Is it ok to buy gold now? Why does the gold price keep shooting up?
Posted on: 14/Aug/2019 12:03:57 PM
The price of gold has been shooting up phenomenally over the last few days!
The public has actually been bamboozled by this amazing increase in gold price! They have the questions - why is it increasing? What are the prospects for the gold price to reduce? Is it ok to buy gold now in the current situation?
As far as India concerned, the very 1st option for saving avenue is gold only!
Most of the investments are made on gold jewellery.
The main reason for the phenomenal increase in gold price is the depreciation of Indian Rupees against the US Dollars.
International Economy
Another important reason is the prevailing International Economic Conditions of recession. The imposing of surplus taxes on the imports between USA and China trading disputes leading to a commercial war-like situation has greatly affected the international stock market.
Further, the war-inducing tense situation between Iran and the USA and other issues have led to the depreciation of the US dollar. Hence, for the economic safety reason, the government banks of most countries and the investors all over the world have been buying gold.
Looking at the prevailing conditions, gold traders observe that there are prospects of a further increase in gold price!
Public anxiety
Whenever gold price rises, it raises anxiety among the common public. Family commitment issues such as daughter’s marriage and buying jewellery for other auspicious occasions in the family lead to anxiety among the common public.
Going by this trend, if one decides to buy gold for earning more in future, that is not also guaranteed - as can be seen when the gold price shot up to Rs. 30000 per sovereign 5 years ago but it could not sustain!
Experts observe that if the prevailing international Economic situation improves, there are prospects of gold price coming down.
Further, it is best advisable to buy gold only in cases of emergencies! Those who intend to invest in gold must closely monitor the international Economy climate and then make a decision!
