Compulsive shoppers are queuing up outside jewellery shops in large numbers to make the most of the recent falls in gold prices. A shopper who managed to get inside a shop in Mumbai says the store resembled an overcrowded long distance local train during peak hours.
From a record high of Rs. 32500/- per 10 gm in November, the yellow metal has tumbled to Rs. 25680/- on Wednesday. However, after the recent fall there are many voices singing in the chorus about the demise of gold. Fears of Cyprus gold sale, liquidations in ETF's and unwinding of long positions by institutions in the international markets have contributed to downfall.
"Selling gold at these levels is not is not advisable at all. Hold on to your current gold investments . Remember gold is akin to currency, in the long run, it will move up".As of those waiting in the wings, many experts believe that they should consider investing in gold in a piecemeal manner now.
The gold prices are are very close to bottom now. Investors should not try to time the market and instead invest systematically through gold ETF's or demat gold on the exchanges like NSEL. Remember, the gold ETF's are always better than physical gold investment. Apart from better liquidity, it also eliminates the making charges and cost and risk of safe keeping. The pricing structure is also transparent.
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