As stocks have lost the flavor they had even two years, the conventionally considered safe asset has found a bullish market, thanks to the ease of trading, thereby inviting speculators.Gold has always been considered an asset for the lifetime. Selling or pawning gold to fund life’s expenses is considered an ultimate sacrifice in the Indian culture. But what if owning gold becomes a near impossible task? People tend to wait, people tend to speculate, and the end result is something we have seen: a bubble about to burst.
This article in ET tells us that gold is not a safe asset class any more. Rising prices of the yellow metal due to speculation leaves the spot buyers high and dry. For an ordinary Indian, gold has an emotional connect, much more than the speculation leaves us with.
There are many who are waiting for the bubble to burst; all that is needed is a trigger. Like crude prices, these will also reach more reasonable levels. It would be interesting to know when that would happen. The Indian market is limping back into action. If the equity market gets stable, we can expect the gold prices to come down.
Even I am eagerly waiting for the gold prices to plummet, I have some purchases in the pipeline owing to important events at home!