Was reading through a Interesting report on Gold, thought will some inputs from the same. The report can be accessed here.
We all know that gold have been reaching new highs last week and the report starts by this sentence: There has only been one other month in the history of the universe where Gold closed at a higher price than it did yesterday. That was August of 2011. The trend here is still up ⇑
Why there is a sudden interest in Gold?
Some are buying because of the coming political instability surrounding the election. Some are buying because the Fed and other central banks around the world are continuing to kitchen-sink the pandemic response, to the tune of tens of trillions of dollars. Inflation fears, deflation fears, geopolitics, pick your reason.
Gold Rate cycles!
Like every commodity, gold is subject to dramatic boom and bust cycles. But if bought and sold well, people can make money being on the right side of these trends. Put together this look at the boom-bust cycle for the commodity:
I don’t think there’s any information from the history of gold rallies and slumps that will be helpful to predict the future price – but this history is supremely helpful to understand the fact that rallies can go on for a long time and end as abruptly as they began. If you just kept in mind this one fact, you’d be way ahead of most of the people you’ll hear talking about gold in the coming months.
Can the current rally sustain? How good are the factors fueling the gold prices placed at the current juncture?
Please read my previous posts to know more on the same.
Happy Investing!
R♥Vi
Disclaimer: The information contained in this document is compiled from third party and publically available sources and is included for general information purposes only. Views expressed cannot be construed to be a decision to invest. The statements contained herein are based on current views and involve known and unknown risks and uncertainties. The recipient(s) before acting on any information herein should make his/her/their own investigation and seek appropriate professional advice.
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