Wednesday, November 23, 2011
Short Term - Gold will again loose its shine.
On Oct-18, I had posted that gold will be loosing its shine for the short-term. There was 3-4 day of capitulation and 20-Oct was the lowest for gold.
Gold has again raised it head and is at a all-time high of around 30K. Even though I am bullish on gold till Mar 2013 (Thanks to the FED announcement of keeping low interest rate regime till mid-2013). Its quite possible that gold may be stuck in a range for next 1 year with an upward bias.
But in next few days or weeks(before 15-Dec), I would expect another capitulation in Gold. Lots of Hedge Funds may have to liquidate their gold position in coming days/weeks. So folks who are still out expecting the gold to come down can load some of their truck with gold at 25K and lower.
There is another interesting, trade for the long term(3-years plus) and that's Silver. But I still don't have a good way to invest in Silver in India other than holding Silver in physical form. For US-folks its 'iShares Silver Trust (ETF)'. Silver price will be lot volatile in next 1 month but can be bought at dips (every month/week) as per your averaging strategy.
GOLD ETF is still my preferred way to invest in Gold in Indian Markets.