4 reasons why you should not buy gold now
From a peak of Indian Rs 32,000, gold (22K) has been hovering around the Rs 25,000 - Rs 26,000 mark for sometime now. There are reasons to believe that gold prices may fall even further and you could wait for prices to dip, before buying. Here are some reasons for pessimism on gold.
The rupee has depreciated rapidly and lost 5 per cent in May and another 2 per cent in June 2013, against the dollar, making gold even more expensive. The government has begun initiating measures to prop up the rupee, which should make gold imports cheaper and hence prices at the retail level. In the last few months comments from HSBC, CLSA and Deutsche Bank have been bearish on gold. Most analysts tracking gold, expect the metal to lose its 12 year winning streak this year. As the US economic recovery gathers momentum, the US Federal Reserve could unwind its artificial stimulus known as quantitative easing. This could result in a sell-off in gold globally, as liquidity would remain tight due to withdrawal of the quantitative easing programme. A fall in international prices of gold, would see domestic prices fall as well. India is the largest importer of gold. In fact, the Indian demand for gold is almost one third of the global demand. The government recently increased the import duty on gold making it more expensive. This is likely to have an impact on demand internationally, which is likely to be reflected in prices in the coming months.4 reasons why you should not buy gold now
4 reasons why you should not buy gold now
4 reasons why you should not buy gold now
4 reasons why you should not buy gold now