GOLD downtime

GOLD : SELL ::

Gold has been considered as a safe haven whenever there is an instability in the economy around the world. Why Gold price is on downward trend now ??

What has happened so far?

Provided that the gold producing mines stand still at the same rate, the gold was bought extensively by various institutions as safe haven
1)Due to bubble effect from 2008's sub-prime crisis
2)Slow recovering western economies and doubts raised every now and then on a double dip
3)Extreme media hype on all economic events and reaction by traders to rely on gold
4)War on Iraq,Afghanishtan and lately Libya
5)Economic worries over EU countries bailout

Due to these, all institutions and investors have invested a lot in Gold to supply the growing demands from countries like India. Apparently, Indians think that Gold price can still go high and few keep buying.

What is happening now?
1) War on Iraq,Afghanishtan,Libya are over and its all clear and all Oil producing rigs and countries are returning to sustainable control and production is not challenged or in danger anymore
2) Oil has to be sold and make profit on a daily regular basis
3) Volume of oil trade/returns is more than Gold
4) Economic recovery has now become clear and investors are able to overcome the market sensation that are being made
5) EU treaty on bailout has been finalized without few EU countries which sends clear signal and positive response from governments
6) Basel III agreement to be rolled out by 2019 to rip off gambling business (Investment banks) from Retail/corporate bank
7) Gold volume has been accumulating and time to get returns and invest in higher profitable instruments etc., for eg.,commodities (oil)
8) New GOLD mines are being discovered in Greece adding more supply

What is going to happen?

As a result of the indirect stability felt by experienced investors, the gold rush has stopped now. Liquid cash required to make more money from Oil. Increasing supply and slighly decreasing demand in Gold due to its non-buyable threshold limit and all these factors are now threatening the further profitability of retaining this yellow metal anymore instead of OIL.
As a result, GOLD prices will decrease gradually and can reach back to 12000 per 10grams and furthermore and the hopes on yellow metal yield will ultimately sustain at a normal range.

Lesson Learnt:
As a lesson learnt, Nothing in this world always has an upward trend. All things have their own ups and downs. Now its the down time for Gold.

All investors of GOLD, make the hay while the sun shines.