Akshaya Tritiya: Not the right time to invest in gold
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Mumbai: With gold ending its 12-year bull run and expected to see further correction in prices, bullion experts said the auspicious occasion of Akshaya Tritiya would not be the right time to invest in gold if an individual is expecting a positive return in another one or two years.
“The gold has entered a bearish phase and we see a further downside from the current level. We are advising our clients to short sell gold on every small rally,” commented Nitin Nachnani, research analyst, Geojit Comtrade Ltd.
On the other hand, gold retail jewellers are expecting a heavy demand for the yellow metal on the auspicious occasion of Akshaya Thritiya (May 13) as the domestic prices of gold have dropped to Rs 27,100 per ten grams from a high of Rs 33,000 per ten grams touched six months ago.
“Overall sales in jewellery and bullion is expected to rise by approximately 20 per cent to 25 per cent considering the current reduction in the rate of gold prices,” said Haresh Soni, chairman, All India Gems and Jewellery Federation.
In the international market, the gold prices have plummeted from a record high of $1,920 per ounce to $1,446 per ounce at present.
Nachnani pointed out that well-informed and sophisticated investors are offloading their gold positions. “Billionaire investor George Soros is selling gold. SDPR Gold ETF, one of the world’s largest gold-backed ETF is seeing huge redemption pressure, which suggests that the metal has entered a bear phase,” he said and added that gold no longer commandsthe tag of a risk-free asset class.
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