Is it a good time to invest in Gold?
Gold has seen a huge upside in the last couple of years. Is it sustainable?
Well, the answer for this is not predictable. This is due to the recent listing of gold in stock markets. Now-a-days Gold is being traded so heavily in the stock market that the volatility that usually is associated with stocks is now seen in the rates of Gold.
However, Gold being a metal is seen as much safer option than stocks, since many believe that the value of natural resources cannot come down too much. There may be volatility but the price of gold crashing down like stocks is surely not expected.
If you see the normal trend, whenever the stocks go down then the gold prices go up. This is due to the fact that if stock is not reliable, people feel it better to invest in safer resources like gold. However, I feel this model is not going to last long. If ever there is a slowdown then the purchasing power of people also go down, so the price of gold will come down along with it. People who have gold at the time of slowdown also would like to demand money in exchange of gold contributing to the decrease in the price.
According to me, the role of Gold in your portfolio can be max of 20%. What is your opinion?
Gold has seen a huge upside in the last couple of years. Is it sustainable?
Well, the answer for this is not predictable. This is due to the recent listing of gold in stock markets. Now-a-days Gold is being traded so heavily in the stock market that the volatility that usually is associated with stocks is now seen in the rates of Gold.
However, Gold being a metal is seen as much safer option than stocks, since many believe that the value of natural resources cannot come down too much. There may be volatility but the price of gold crashing down like stocks is surely not expected.
If you see the normal trend, whenever the stocks go down then the gold prices go up. This is due to the fact that if stock is not reliable, people feel it better to invest in safer resources like gold. However, I feel this model is not going to last long. If ever there is a slowdown then the purchasing power of people also go down, so the price of gold will come down along with it. People who have gold at the time of slowdown also would like to demand money in exchange of gold contributing to the decrease in the price.
According to me, the role of Gold in your portfolio can be max of 20%. What is your opinion?
Thanks to share that information with us, its amazing for business.Nice post
ReplyDeleteNo doubt gold is good idea to invest but investing in gold is not very easy because one should know all the strategies to gain profits in gold investment. Always consult with experts before investing in gold.
ReplyDeleteUS Gold Bureau