Sunday, May 12, 2013

DO NOT BUY GOLD THIS AKSHAYA TRITIYA!

 
 
If Akshaya Tritiya is an auspicious day to buy GOLD, then, when, is an inauspicious day to Sell Gold?
These "experts"(?) always recommend to buy Gold, but never to Sell Gold!!!
Buying gold this Akshaya Tritiya isn't advised

For most of us Akshaya Tritiya would be an ideal occasion to buy gold, but experts predict further correction in gold prices going ahead. From strictly a financial point of view, experts feel it doesn't make much sense to buy gold at current levels.
Praveen Singh, senior analyst - commodities at Sharekhan says barring traditional significance, it probably doesn't make much sense to buy gold at current levels.

Jonathan Barratt, chief executive officer, Barratt's Bulletin advises investors to stay away from gold for the next few months. 
 "This is not a good time to accumulate gold and silver. It is just beginning of a decline. We have broken significant support levels. A bear market has started," Sudarshan Sukhani of s2analytics.com stressed.  
 SP Tulsian of sptulsian.com also believes that weakness in Gold will continue for sometime. "Coming on gold the kind of technical levels which is being talked about are anywhere between USD 1200-1250 per ounce. One can look to see the level of Rs 25000." 
 
 Gold prices do tend to soften after the wedding season in May and before the festive season that begins after August, but there is no technical or fundamental reason to buy gold on Akshaya Tritya.
Because Akshaya Tritiya comes only once a year and anyway the prices are lower than what it ought to have been. On the flip side, if you research well, Akshaya Tritiya was only meant for engaging in some good deeds and not worshiping Goddess Mahalakshmi. The gold craze was created by our friends in the jewelry business. Three cheers to the visual media.
 
A seller is always bullish on Gold. If you ask a barber whether you need a haircut, he will 100% say, YES.
Gold is due for a correction. If not price correction, definitely Time correction.
I personally recommending to my clients to avoid buying GOLD for investment purposes.
 As gold offers no regular cash flows, there is no intrinsic value that we can assign to, say, a bar of gold. This means that gold prices can theoretically decline to any extent in a corrective phase. It would be a good idea to start buying now, but to phase out your purchases over 4-5 instalments to benefit from volatile prices. 
If your Asset Allocation is telling you to BUY Gold., then buy Gold ETFs or Gold Saving Funds via SIPS. 
My choice would be RELIGARE GOLD FUND. 
 
 
Also visit http://equityadvise.blogspot.com

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