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Gold-ed!

May 27, 2008
tags: ,

Economic Times has some interesting news to look for when it comes to the recent surge of gold. Here is the link reporting in somewhat wide-eyed wonder about the surging prices of gold. To cut a long story short, Gold has breached somewhere around Rs12843/kilo, August future contract.

Following this, close on its heels, now traders and savvy investors are looking to cash out. After all this is one of those booms when everything else is tanking. But retailers who made a mistake of buying gold coins from banks, are left with something to think about. Hardly a profit and at best a break even. Blame the banks for the 8-10% premium they attached with it. But again thats not really the scenario I would like to talk on.

Back in March, I told some of my friends to buy gold, even if nothing else. I always saw April to be an ideal time to go shopping. After all, few of them are really the traders they would like to think themselves to be and all of them are investors. So March-April 2008 was as good as anytime to have actually entered this market. It is not a surprise, that at the recent bleeding stocks suffered at the hands of the bear, rupee has declined. And declined substantially. [See the long term and short term analysis of rupee: Rupee: A spent force?]
And on the back of this, when more lucrative and easier ways of making money, like say stocks and intra-day trading comes down to a trickle, gold surges.
Yes, gold is not exactly the rockstar you think about, when talking about profits. Its something like, on an increasingly bullish day it will rise by say around Rs 40 per ounce [close to a dollar], or say approx two bucks per gram.
But as the saying goes, Half a loaf is better than no bread, gold is traditionally a slow but steady script. But a rising script in the arena of the falling gladiators of modern economy.

So what does, future have it for gold. Long term, bearish. Short term bullish. For me, rupee has no stopping essentially. But yes, it will surely follow its own Elliott Wave retracements, and thus pushing the gold higher. And to talk of the degree, this is one of those strong retracements. So gold is but expected to rise.
So what do you do? Buy, when everybody else is buying? No… not now. I would like to see something happening on the gold front in the coming days, which should open a profitable investment window[ read: a fall]
After all buying when everybody is selling and selling when everybody is buying is the real mark of an intelligent investor isn’t it?

The usual disclaimer: I am not a qualified guy to be making analysis and stock advises, and if by any way you think, I have been spewing some sense out of my mouth, I like Cafe Coffee Day’s Chocolate Shake. But yes, do apply your brains and guts before you make your investment decisions and this is not an investment recommendation. And the usual disclaimer stuff.

Disclosure:
I do not hold gold positions, but my family does have positions in gold

And yes, did I say, very few good things in life are for free, Jump Up! is one of them.

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One Comment leave one →
  1. Soham Das permalink*
    May 29, 2008 11:30 am

    29th March 2008, Economic Times reports:
    Gold futures down on soft oil, firm dollar

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