Many buyers for gold, experts caution
Posted on: 20/Apr/2013 3:34:42 PM
There has been wave of purchase of physical gold in the wake of falling prices of the yellow metal globally. Says an official at the World Gold Council (WGC), � There is a shortage for bars and coins in Dubai, a key market for the metal. Despite the gloomy projections, premiums are at $26 per ounce in Mumbai and $6 in Shanghai for gold. This indicates that buyers are willing to pay more than the spot prices for the metal.�
However, experts have cautioned buyers about the volatile nature of the metal�s trading. �There has been excessive speculation in gold. Investors should avoid lump-sum purchases (of gold)� Investors should not go overboard as further (downward) correction cannot be ruled out. The risk of a larger fall is still there. If it (downtrend) lasts for more than six months, the bear phase in gold could well turn out to be a long drawn affair�, they say.
