Is the Golden Age Over?
19-Jun-12 Leave a comment
Finally Pranab Mukherjee said it. He is trying to discourage ‘educated middle class’ investors in India from buying this ‘dead asset’ considering that collectively, Indians now throw $60-62 bn worth of good money on the yellow metal!
While nothing has abated about the nervousness we read in financial journals the world over, I do think that the entry point in Gold for handsome returns has certainly passed us many years back. Yes, in the short term there might be volatility and the metal may climb up even more (as this article from The Economic Times points out) but a parabola is a parabola. To sustain Y = A .X^2 kind of a move, continuous energy needs to be supplied – it does snap one day or the other.