All that goes up is Gold
Gold price has been going up for years now and is creating new highs quite often in the recent days.
- The gold is internationally traded with US Dollar and Dollar has been sliping in its value for various reasons. Dollar value is based on what is happening in US polity and economy. Dollar-derived demand is pushing up the prices.
- Many countries are required to maintain reserves in Gold and Foreign currencies. Many of them are increasing gold reserves and reducing foriegn currencies - read US Dollar. Soverign purchases are creating huge demand, which is also pushing up prices.
- Indians have been holding and adding to their holdings of gold jewellery contineously. Many westerners do have gold bars in their investments. But, the trend is changing, many non-indians especially chineese are clamouring to wear and hold gold and silver jewellery in large quantity. This has brought a major shift in demand for gold and consequently the prices of Gold.
- Yes, there is no respite or reasons seen for Gold price to come down in the near term, except when US economy stabilises and grows. This will take quite some time, considering "US is in deep shit" - what amercian will say.
- Keep buying in small quantities whenever the price falls by $100 per ounce, from recent new highs.
