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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
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
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.