Gold Expected to Cross USD$ 1500/Ounce
Goldman Sachs has commented that Gold will reach the remarkable price of USD$ 1400/Ounce this calender year. The reason for this is that Federal Reserve Management had come up with the idea of tapering of Bond Purchases amounting USD$ 85 Billion nor stopping it at once. So we see the galloping price of Gold, Silver, Copper, Crude Oil and other metals in the commodity market. This suggestion is wrong and can be proved wrong with the following details. Please don't invest in this metal unless it reaches the bottom of the pyramid [USD$ 800/Ounce].
Gold prices started inflating after the Federal Reserve started the stimulus package of USD$ 85 Billion Bond buying policy in the year 2010. But now, they'ad almost reversed the policy. They did'nt stop it, but started curbing it. Due to this US Dollar which were pumped in plenty will be less in the world market. This money got siphoned in the commodity market and started ballooning it. China and India which were at the peak having the growth rate of 10% to 9% respectively. Market demand were high in the other countries too.
Now US economy is cropping up. Corporates start to get profit or expected to get more in the near future to come. But the whole developing economy like China, India, Russia, Brazil, South Africa started to feel the heat. Though their stock market are at the top, but all will be facing the mayhem of Current Account Deficit and Trade Deficit in the years to come. This will crash the market and Unemployment will be high in these countries. Metals like Copper, Zinc, Lead, Palladium, Silver, Iron Ore will come down faster as Supply is above Demand.
India, China the chief purchaser of Gold, Silver had started to put import control of all purchases. This will hamper the existing Gold market. If they purchase, it can even swell the turbulent Current Account Deficit[CAD], which will depreciate the currency. Countries like Spain, Portugal, Ireland, Greece, and even United Kingdom have to sell Gold to revalue their depreciated currency. Gold though appreciated, never it created any value. It's the difference of Relative Value with reference to US Dollar[$] is growting but there's no change in absolute value. Gold had already appreciated wildly but it never came down sharply. Invest in Gold if it crashes and reaches USD$ 800/Ounce. Otherwise No.
Gold prices started inflating after the Federal Reserve started the stimulus package of USD$ 85 Billion Bond buying policy in the year 2010. But now, they'ad almost reversed the policy. They did'nt stop it, but started curbing it. Due to this US Dollar which were pumped in plenty will be less in the world market. This money got siphoned in the commodity market and started ballooning it. China and India which were at the peak having the growth rate of 10% to 9% respectively. Market demand were high in the other countries too.
Now US economy is cropping up. Corporates start to get profit or expected to get more in the near future to come. But the whole developing economy like China, India, Russia, Brazil, South Africa started to feel the heat. Though their stock market are at the top, but all will be facing the mayhem of Current Account Deficit and Trade Deficit in the years to come. This will crash the market and Unemployment will be high in these countries. Metals like Copper, Zinc, Lead, Palladium, Silver, Iron Ore will come down faster as Supply is above Demand.
India, China the chief purchaser of Gold, Silver had started to put import control of all purchases. This will hamper the existing Gold market. If they purchase, it can even swell the turbulent Current Account Deficit[CAD], which will depreciate the currency. Countries like Spain, Portugal, Ireland, Greece, and even United Kingdom have to sell Gold to revalue their depreciated currency. Gold though appreciated, never it created any value. It's the difference of Relative Value with reference to US Dollar[$] is growting but there's no change in absolute value. Gold had already appreciated wildly but it never came down sharply. Invest in Gold if it crashes and reaches USD$ 800/Ounce. Otherwise No.
