Glittering Gold

In my previous post Trifecta, I had mentioned about recessionary pressure in all three major aspects of the global economy…namely falling prices in Stocks markets, Crude and Gold… looks like that trend is about to change… The gold is starting to venture out on its own... Based on conventional wisdom it was expected that the gold and precious metal prices usually showed inverse relationship to stocks and oil…however this time that trend was bucked for quite some time… Now though it appears that the Gold is reversing that pattern… the Gold is shining all over again………. For Gold investors it is good news but realistically this trend will not help the recession scenario much…..In the precious metal sector the silver is scaling new highs in the prices and so is platinum. The private investors, mutual funds and hedge funds returns should sizzle at least for this sector. In that sense it appears that precious metals are after all precious despite inflation or deflation. This provides a good indicator for the asset reallocation strategies as well. I am not sure on a large scale basis how many small investors own a gold or similar metal but current trend proves that a good % of the portfolio invested in gold could bring in good results. I expect the gold to keep rising based on current global economic scenario. Though dollar is gaining strength due to weaker currencies else where, the demand for gold as a safe heaven is going to be higher for quite some time…and that should push prices up at new record levels. So for now all that glitters is GOLD after all …. At least a small portion of the investors have something to cheer about…