tag:blogger.com,1999:blog-7148222695370746347.post1148650731138051459..comments2023-10-15T17:16:24.091+05:30Comments on Stock Market Charts | India Mutual Funds Investment: Is this a good time to buy gold?Subhankarhttp://www.blogger.com/profile/13248068905130821262noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-7148222695370746347.post-44693493895959934552010-02-12T18:57:19.045+05:302010-02-12T18:57:19.045+05:30There is confusion about the concept of inflation....There is confusion about the concept of inflation. Does inflation cause prices to rise? Or does the increase in printed money supply cause rising prices, which lead to inflation?<br /><br />Increase in the money supply led to the fall in US dollar value. That caused 'flight to safety' towards commodities, including gold. Now that the US economy is showing signs of recovery, the dollar is increasing in value - leading to a correction in gold prices. <br /><br />That is a logical explanation - but markets often move due to sentiment and speculation, particularly in the short term.<br /><br />Some bail out package will be worked out for the PIIGS. Don't think they will resort to selling gold.Subhankarhttps://www.blogger.com/profile/13248068905130821262noreply@blogger.comtag:blogger.com,1999:blog-7148222695370746347.post-43941268893889755102010-02-12T16:36:06.118+05:302010-02-12T16:36:06.118+05:30Gold I was thinking will not move as the countries...Gold I was thinking will not move as the countries - portugal,italy,greece,spain own some good quantity of gold and they would want to sell it to survive. As the economy of these countries look bad, we saw the $ also rally, which moved gold down. <br />What will let gold rally then? - the dollar moving down, flight to safety - move to gold!!. I have not been able to understand that concept about an inflation hedge :(scorpiohttps://www.blogger.com/profile/01323816247057721005noreply@blogger.comtag:blogger.com,1999:blog-7148222695370746347.post-17805699506572897292010-02-11T08:36:58.326+05:302010-02-11T08:36:58.326+05:30Thanks for your comments, Madhu.
It makes more se...Thanks for your comments, Madhu.<br /><br />It makes more sense to buy gold ETFs than physical gold - considering security, purity and resale issues.Subhankarhttps://www.blogger.com/profile/13248068905130821262noreply@blogger.comtag:blogger.com,1999:blog-7148222695370746347.post-69380585262685312402010-02-10T16:00:45.126+05:302010-02-10T16:00:45.126+05:30Hi Subhankar,
How ru?
I am commenting on your writ...Hi Subhankar,<br />How ru?<br />I am commenting on your write up after a long time. <br />As usual your write up is good.<br />I would like to reiterate your point on gold.<br />Gold is an option for hedging and not a good investment proposition.<br />Also investment in gold does not have any subsequent benefit to the economy or the society.<br />Investment in shares create new capacities thereby new employment, taxes, development etc.<br />More over buying gold from neighbourhood jeweller has considerable risk. Hallmarks are still far away from instilling confidence in buyers.<br />At the same time buying from banks are very costly. Some banks charge as high as 5% - 10% more than the prevailing price.<br />To sum up, it is very difficult to make significant money from gold investments.<br />Well jewellery is not included it has more fashion value.Madhuhttps://www.blogger.com/profile/15757492225817270032noreply@blogger.com