Well frankly I do not know whether it is a good time to invest in gold or a great time to get out of gold. But let us look at the obvious reasons to buy or sell.

Obvious reasons to buy:

1. The world is busy printing money so value of currencies will fall but gold will go up.

2. More uncertainty means more gold should be bought – old world wisdom

3. Gold prices will rarely fall, if at all.

4. As Indians and Chinese consumers buy gold prices will go up from here.

5. When there is political uncertainty in the world – you are better off  buying gold.

However here are 5 reasons why the market can only come down from here:

1. Everybody knows about the above 5 reasons, so it is already priced in.

2. As all the money printers are the biggest gold holders they can sell gold instead of printing notes.

3. When all mutual funds launch gold scheme and there is nothing to distinguish between schemes, the product will be at its peak. Will all mutual funds sell when money is being collected? I doubt it.

4. Do not know about the Chinese, Kerala is a net seller of gold. An average unemployed Keralite can sell gold or land to pay for bread. Land he cannot sell for Rs. 2500 or 7500…so he will sell gold.

5. All mutual funds can disturb any market..so you must buy etf!!!

I rest my case..buy gold or sell gold, as a broker I need brokerage. Simple aint it? As a distributor i make no TRAIL commission on gold, so I create activity – buy, sell, buy sell…..and make some money!!

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  1. You got to be joking! US will have to change its way of living to make such a big change. It is like saying Indian politicians should not mix religion with politics. Desirable but cannot happen at all.

    Gold is a lousy commodity perhaps in the midst of a bull bubble thanks to overprinting currency machines all over the world.

  2. Dr Mohammed Ali Khan

    So you feel it is desirable?
    I don’t think Gold is a commodity..
    I still functions as a unit of transaction in many ways..
    And a good hedge against inflation.

  3. Dr.Anand Ramachandran

    I do personally do agree with the view of Dr.Ali that it is good hedge against inflation .. More over i also feel that Gold is a commodity that gives a great margin of liquidity , as when wanted in any part of the world

  4. gold a hedge? surely you must be joking Dr. Anand! If you bought gold in 1980 it cost you $ 600, now it is 1030. Can anybody explain the hedge against inflation please? i am amused at the misinformation campaign

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