July 2008 - The best time to buy gold?

Posted On Thursday, Jul 10, 2008

Share:

International gold prices have risen by 11% for the six month period ended June 30, 2008. During the same period gold prices in india have risen by 21.2% on account of the depreciating Rupee.

The big question is whether gold prices will rise or fall over the next six months? or what will be the price of gold at the end of the year? That is anybody’s guess today. Historical data may provide some indication on the likely direction of gold prices.

International gold price trends during each of the calendar years starting from 2002 are given below. Returns shown in the graph below, are the absolute returns on gold till the end of the calendar year, assuming purchase at the average price of gold between June and July of that year.



July 2008 - The best time to buy goldJuly 2008 - The best time to buy gold
  
July 2008 - The best time to buy goldJuly 2008 - The best time to buy gold
  
July 2008 - The best time to buy goldJuly 2008 - The best time to buy gold
Source for all charts: Bloomberg.
Past performance of gold may or may not be
sustained in the future.;
 
July 2008 - The best time to buy gold

From the above data it is apparent that investors who invested near the average prices of gold between June and July of the last 5 calendar years, would have got positive returns on their investment within the same calendar year.

What returns investors will get upto the end of 2008 by investing in gold today is not known. However, historical data suggests that the returns on gold during these periods have been positive with the least being 3.6% and the maximum has been 26.23%. The average returns have been 14.81%. On an annualized basis these figures would exactly be double of what they are shown above.

So going by historical trends, if you are looking to buy gold in this year, then this period (June - July) could be be the best time to buy gold.

Buy Gold now... Buy Quantum Gold Fund (ETF).



Above article is authored by Quantum.

View All

  • 5 Important investing Lessons from Ganesha - The Lord of Success
    5 Important investing Lessons from Ganesha - The Lord of Success

    Posted On Monday, Sep 18, 2023

    Ganesh Chaturthi celebrations is a time for festivities, fervour and above all considered an auspicious occasion to start the journey to usher in prosperity.

    Read More
  • Debt Monthly View for August 2023
    Debt Monthly View for August 2023

    Posted On Monday, Sep 11, 2023

    In the last month, the 10-year Indian government bond (G-sec) yield went up to 7.25% in the first half and then retraced back to the previous month’s closing level of 7.17% by the end of the month.

    Read More
  • Equity Monthly View for August 2023
    Equity Monthly View for August 2023

    Posted On Wednesday, Sep 06, 2023

    The S&P BSE Sensex declined by 2.3% in the month of August. Weak monsoon, spike in inflation and US yields hardening led to the marginal correction.

    Read More

Add To Cart

Add To Cart

Your cart is empty
Total of Lumpsum
Amount

Get In Touch

Take small steps in financial planning to achieve big dreams! Start your investment journey today!

@@tlcomend@@