A lot has happened in the past few days. Let's Discuss.
Russia came out with a vaccine around 10th & 11th Aug'20 & Gold fell by good points.
The relationship between the Gold & Equity Market is inversely proportional.
which means when equity markets don't perform well over a few quarters investors start pulling out their money from equities and start investing in Gold (which has been a traditional safe haven).
(In India, the best way to invest in gold is through Gold Sovereign Bonds).
But here we are at a crossroads, for a very short time although.
1. Russian vaccine looks promising but there are a lot of concerns being raised from the western scientist about its viability. {You can call it the soft residue of the cold war, but they're important nonetheless}.
2. Warren Buffet has bought 21 million shares of Barrick Gold (Worth $563 Million). (There are suggestions that he could've bought 47,711 Bitcoins instead of gold as one is the asset of the past and the other of the future but that's a debate for another day).
Now by putting his money in gold Warren buffet has allowed most of the fund managers to invest in commodities without being judged by their peers for the low returns. This will pull out a significant amount of money from equity markets and will bring some selling pressure with it.
Also if the Russian vaccine proves itself to be successful it will take less than 24 hours for the gold to drop $100 in price and if American & other scientists raise some concerns for the vaccine we'll see gold above $2000 in no time.
For now, Bulls are trying to take Gold above $1950 & Bears are trying to reach for below $1930 price.
Only time will tell who will win.
Russia came out with a vaccine around 10th & 11th Aug'20 & Gold fell by good points.
The relationship between the Gold & Equity Market is inversely proportional.
which means when equity markets don't perform well over a few quarters investors start pulling out their money from equities and start investing in Gold (which has been a traditional safe haven).
(In India, the best way to invest in gold is through Gold Sovereign Bonds).
But here we are at a crossroads, for a very short time although.
1. Russian vaccine looks promising but there are a lot of concerns being raised from the western scientist about its viability. {You can call it the soft residue of the cold war, but they're important nonetheless}.
2. Warren Buffet has bought 21 million shares of Barrick Gold (Worth $563 Million). (There are suggestions that he could've bought 47,711 Bitcoins instead of gold as one is the asset of the past and the other of the future but that's a debate for another day).
Now by putting his money in gold Warren buffet has allowed most of the fund managers to invest in commodities without being judged by their peers for the low returns. This will pull out a significant amount of money from equity markets and will bring some selling pressure with it.
Also if the Russian vaccine proves itself to be successful it will take less than 24 hours for the gold to drop $100 in price and if American & other scientists raise some concerns for the vaccine we'll see gold above $2000 in no time.
For now, Bulls are trying to take Gold above $1950 & Bears are trying to reach for below $1930 price.
Only time will tell who will win.