April 22, 2013 2:33 pm
Gold prices are falling with each day passing. Is this the right time to invest in Gold?
Dear Pras, how about investing the amount in a 3month bank FD to protect you a bit from the hike in price of the Gold. If your purchase is so much certain, please do not waste time in anticipation of lower price & go for purchase.
I am planning to buy Gold ornaments for marriage purpose (may be I can wait upto 3 months), Please advice me the right time to buy it. Will the price be still slashed in near future?
One should be clear about the goal behind buying GOLD. We should not look in GOLD – for an investment instrument, its good when we have a goal – like daughter’s marriage etc. It also has a negative correlation with stock market- so it always advisable to have around 10% gold in our portfolio.
And SIP is always better rather than lumpsum buy – as no one can time the market.
Gold was a safe haven investment ten years ago. But it cannot keep going up for such a long time. There may not be another bull market in gold in very near future – it does not produce any returns with growing economy or company/stock’s growth, it works on people’s sentiment.
If you want to buy gold for a longer time horizon then we would suggest you to wait for sometime as we see gold prices trickling lower in the next two years. The markets are seen moving in a range with a small upside movement in the prices.
Therefore, we suggest you to hold your plan to buy gold if you seek to invest for long term. But if you want to invest for short term period say 4-5 months then I would suggest you to buy gold.
Dear Trade guru, whay do you want to invest in gold & for what time? Does gold fits your portfolio?
Please answer these questions first.
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