what about equity mkt that too made top and went down to 8800 and now eyeing top bro its mkt and fall is in paper mkt physical mkt is still strong and buying figures are crossing limits pls check any good jewellery shop and post what he says premium in physical is around 1000Rs means buyers are more and sellers are Jai Mata Di
Dear gold bug PT,
I agree your view about sensex making top and bottom and eyeing top again, but do you know the valuation of shares at top, or say when bear market started in sensex which we define as 15% down from the top. I bet people who have bought even at 25% correction at that time will not even get that type of valuation again if our market reaches that top again, and imagine the pain of watching their investment sink by 50-70% for 4-5 years before market cycle turns again.
Now coming to the Jewellery shop logic, yes premium has gone up from 200-300 Rs in retail from the mcx prices to 1000 Rs after this fall. So you mean to say that follow the herd. Do you know why is that premium in the short term, go through the article
http://blogs.economictimes.indiatim...vt-rbi-are-again-getting-it-all-wrong-on-gold.
Apna market efficient nahi hai, bohot restrictions hain, 1000 rs ka arbitrage hai and it will fill up in the due course of time, as its a short term premium which shows short term buying sentiment and not a major bottom.
And lastly yes paper gold sell hua hai, fully agree with you, but who said ki paper gold is not linked with physical gold. Wake up aaj paper economy hai har country ki, shayad hi koi country hogi jo fully gold standard me deal karti ho, I mean sone k sikke chalati ho. Modern economy paper economy hi hai, shares, gold, crude, commodities sab paper pe chalte hain aur unka impact physical pe aata hi hai aur iska koi alternative nahi hai. Future is uncertain, kal ko currency jab apne yahan uski sahi range 40-45$ pe aayegi tab physical gold sirf sajane k kaam aayega. Don't turn blind eye on so many factors just because our ancestors started tradition of hording gold centuries ago. China aur India ki local demand dekhte hain kitna support deti hai.
