What should an average investor do when the gold market is so volatile?
• At this rate investors should keep out. The market is expected to reverse. When gold comes down to $712, one can go back and buy. What is the reason for this fluctuation? Does it have anything to do with stock markets? • You see share market is going up because India’s economy is strong. So Sensex is rising and people have earning power and money to invest in market. As far as gold market is concerned, India has got nothing to do with it. It is an international market. World’s biggest buyer is India and we have to depend on other countries for gold. We don’t have any gold mine worth its name in India. New York and London decide gold prices and after the fall of interest rates in America, the prices of gold have increased. There are many other reasons too for the rise in gold prices, crude, euro, Yen and international demand. Is it good for a developing nation like India to import a lot of gold? After all, how does it help the economy, as it is only a metal and not food grain? • (Laug
