Chances of CARAT magic in the air amidst lockdown? If the gold price in India are any indication, the answer is high! The record scatter in the stock market has spared no one. No portfolio can evaporate the Coronavirus induced losses. Except maybe gold.
All this while, investors aren’t actually acknowledging the reality of our new normal as the global economy has been crippled by the COVID-19 pandemic.
So has the yellow metal rush started once again ?
New trends in gold mining points to a YES.
Gold prices in India fell on Friday, tracking a decline in global rates. On MCX, June gold futures fell 0.23% to ₹46,056 per 10 gram after jumping about ₹800 in the previous times. As a result of, gold markets in India mostly remained shut due to countrywide lockdown to prevent spreading of COVID-19.
Relevance of gold as a potential strategic asset can be seen in many of the reports produced by analysts over the world. Let’s have a look at their opinions.
The gold market is set to hit new highs this year amid the Covid-19 outbreak while banks, facing delivery troubles, cannot fulfill real demand for the precious metal says Analyst. While, the metal has already reached multi-year highs, the pandemic has created more conditions to boost investment into it. Physical gold is the perfect hedge against all risk and financial system’s crash says an advisor on precious metal
“GOLD MINES RIGHT NOW ARE LITERALLY GOLD MINES” – says PETER SCHIFF
According to a Report by RT’s Max Keiser, investors are currently scrambling for physical gold due to delivery issues as miners and refineries had to shut down over the virus outbreak.
Similarly, people started to figure out that the paper gold market is a “scam,” and this could be another factor for ascending prices up.
We’re going to be into a prolonged period of very soft economic growth. There is no rebound that is taking us back to where the economy was,” said David Rosenberg, chief economist and founder of Rosenberg Research and Associates. In addition,”The new normal is going to be very constrained.”
Tables Turned: Now it’s GOLD turn
Once dismissed as a useless liability is now considered as an asset.
AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle that will ultimately end in collapse.
As governments and currencies begin to fail, everyone will rush to the safety of precious metals.
suggests AG THORSON
However gold prices are struggling to find momentum as equity markets rally, many analysts remain extremely bullish on prices in the long-term. Above all, many analysts continue to call for record-high gold prices by the end of the year or early 2021.
Here’s a link to see the gold price in India-https://www.moneycontrol.com/commodity/gold-price.html https://goldprice.org/live-gold-price.html
-Muskaan Sharma
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Couldn’t agree more.
Great article !