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Gold is not a good investment now days

forex_tips | 28 September, 2006 13:28

According to Dubai industry officials Gold has lost some of its shine.

Gold as a commodity investment is not the best idea for the time being, but if you already have some gold save it for the future, it will be worthwhile thing to do.

  

Gold purchasing should be considered as a saving fund, not investment, as investment is other financial options is much better.

 

During the past 30 years, worldwide gold prices have fallen from $850 per ounce in 1979 to $580 this year, which is more than $250 per ounce.

 

World financial portfolios are the major factor trying to affect the gold prices, by trying to increase international gold consumption and by that to increase the ounce price to $1000.  Needless to say that those efforts are not working and gold prices are still on a decline.

 

Central banks are also trying to double their gold reserves and by that to directly affect the ounce price, but by doing so it does not help move the price very much.

 

The media has a big role in helping to increase gold ounce prices.

By offering new models of jewelry new fashions trends and holding huge advertising campaigns by top traders the prices are rising a bit. It attracts more buyers.

 

Ahmad Bin Sulayem, chief operations director and board member of the Dubai Multi Commodities Centre was quoted saying, that gold trade is very popular in the region.

"Trade and investment in gold is profitable, but investment needs good experience," he said, adding that he encourages both investment and saving in gold.

"Fluctuations in gold prices are within acceptable limits, and there are no sharp fluctuations that might be risky to investment in gold."

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