Monday, October 13, 2008

Don't hold-sell gold

Wealth has three virtues.Bhog(expenditure),dan (donation) and finally nash(destruction).You should spend money for useful purpose or donate to the needy.If the above two purposes cannot be utilized then the third and final destination of wealth will be automatically enforced-which is destruction.Today the whole world is clutching gold,for which purpose? I belong to a village in Bihar and have spent many years there. Within these years i observed that from rich to a poor boasts of gold. A poor man also has gold, may be in a small amount, but he has . This gold has been carried on from posterity to posterity to be utilized in the time of distress. This gold is not elixir which will make on immortal. I have seen many people using gold to fulfill their commitment. Afterwards when the situation grew better, they again possessed gold several times greater than earlier.
In the year 1990-91, India mortaged gold to save her pride and to avoid financial crisis. Great Britain also sold 300 tones of gold around the year 1995-97 at $292. So, in this financial crisis why will America not sell gold? So ,if you short gold keeping in your mind your capacity and margin call then the chances are that you will make huge profits.
Reasons for the above assertions:-
If you see the past then the price of platinum was 2 or 2.5 times to that of gold. But today platinum is trading at $980 and gold at $900. If we see it in a technical view then this situation will be called divergence. This means that platinum will trade at $1800 or gold will drop yo $627 in the coming month.
In future,USA may sell gold and in this situation gold can plunge further deep. USA can do so to strengthen its dollar
In this article, i would write about crude, because due to my busy schedule may not permit me to write. After the production cut from OPEC, crude will not rise rather may fall to $65 or $45. So you should avoid taking buy positions in crude. All these forecasts are for trader with long term prospective and for those who can afford margin call according to their capacity.

No comments: