Gold is crashing- What does this indicate ?

[niarhab]

Gold prices down Rs 1,250/10 gram, never expected to fall this much.

http://www.deccanherald.com/content/325 ... 25010.html

[msn1270]

From past couple of years, investors were buying Gold as a safe investment and it was rising continuously. Probably now its time for them to liquidate it. if I remember correctly, this is II or III time happening in this range in the last one year for both Gold and Silver. Whenever investors(Especially Foreign Investors/Institutional investors - not Retailers) want to book their profit, they sell it abruptly leading to this kind of corrections. At present we need to consider it as on-off the case.

If this kind of downwards in God+Crude Oil happens continuously for several more days, then its good news and also for our indian economy. we can save our foreign exchange and rupee will become stronger.

[tvsh]

It means we are going back to 1980s. If history repeats itself is true, It will be another 25 years till we reach the same level in Gold

[gurukiran20]

South India contributes Majorly in the Countries Retail Gold Sales.

Its high time we should be called as Golden people

[msn1270]

The gold price rise in the last 3 years and the falling trend currently happening is mainly due to the Foreign investors and High network Individual Investors who invest in Gold Bars in the commodity market as a safe bet whenever there is uncertainty exists in the financial market. Even when the Governments Buy Gold in bulk as an asset. Even India & China Bought several 100 tons gold around 2 years back. When Investors or Government buy Gold in Bulk, it creates artificial demand, leading to speculation and lower preference to the (shortage) to the retail ornamental market. Hence the price increases. It is nothing to do with the retail buyers trend whether its south or north india.

Retailers buy only the ornamental gold, which is not an investment at all as they cannot encash by selling it. Reason: Jewellers never give cash for gold. They only exchange old one to the new one. In worst case, people pledge the ornaments with the Gold loan NBFC companies for taking loans. Even the Chain snatchers does the same nowadays as they get more money than illegally selling it to the jewellers for penny amount.

[sreekbda]

This is just a correction in a secular bull market that will go on at least til 2020.


In other words excellent time to buy gold!

[niarhab]

Is real estate next in line for crash ? Keeping my fingers crossed.

[m3_07]

Is real estate next in line for crash ?

Investment in land is many a times better than in Gold. If you have a property with right titles, people can sit over it for generations....& indeed there are people who are stitting on it for generations in few of the prime places in bangalore. Moreover there are very few in a tearing hurry to dispose their plots....hence the chances of the real estate consolidating is quite unlikely. This however may not be true for the flats.

[panandh]

In olden times, GOLD was used as a currency across countries (kingdoms?). When migration happens from one country to another country (due to war/natural disaster), during the time when established villages/towns were destroyed completely, GOLD was better investment. What will I do with a piece of land in a place where no human is willing work?

I think time has changed in that sense, cities/towns don't get destroyed. (I dont know the ground reality in some african countries).

As of now GOLD is like any other metal, only with people's knowledge of past, it has its value. Maybe good comparison will be price of iron rods over the years compared to gold over the years. The long term comparison may through some surprises.

P. Anandh
PS: I have invested sizable money in GOLD and not happy about the crash that is happening