What to do with gold?
Five months ago, I had highlighted the likelihood of a trading opportunity emerging in gold. ( see here ) The opportunity did present itself, though not exactly in the manner I had anticipated. Nonetheless, the gold prices rallied about 19% in USD terms; from a low of USD1630/oz in early November to a high of USD1950/oz in early February. Since peaking out in early February, the gold prices have corrected about 7% in USD terms. It would therefore be pertinent to ask what traders and investors should be doing with their gold positions. It has been my long standing view that gold is no longer an investment asset. (for example see here and here ) The view is even strengthening with each passing year. I believe that it is highly unlikely that gold will stage a comeback as a widely accepted medium of exchange (gold standard); and it will be gradually phased out as a store of value as better digital options emerge. In this context, the latest report of the World Gold ...