From the Desk of Chief Marketing Officer,
In continuation of my previous Blog on the precious metal, I would like to draw all of your attention on the concluding statement:
“But remember always to watch is this the right price to start with Gold?????”
Surprisingly, as, in June.2012, in my previous blog, I did not find the reasons of gold moving rapidly upward in the last two years; I still did not find the logic of its dramatic fall except some strong apprehensions making way for smart speculations.
However, I can attribute following factors, as the primal reasons for the erosion of shining of the metal:1. Net Selling by ETF’s
2. Apprehension of ECB selling Gold
3. To some extent, Panic Selling to avoid risk
4. Worry over the possibility of the slowing down of QE3 by US Federal.
Keeping in mind the factor that the C3 mining cost of the Gold is roughly around $1200/oz and adding in it the usual profit or incentive, one can have a normal price of Gold at $1350/oz (approximately Rs. 25500/10 gm) surprisingly close to the current trading price, I feel that the bottom is somewhat had been hit already.
I am waiting for the dust to settle down after absorbing the current selling pressure and subsiding of apprehensions and have a prediction of level of $ 1500/oz by Dec.13