It is hard to tell whether a commodity has reached its bottom price or not. Considering this July’s trend, the cost of gold has seen such decline that it’s impossible not to wonder whether this is the lowest it gets to or not. Mining investment strategists are being constantly asked this question.
Why One Shouldn’t Worry about the Market Bottom
Timing a market is not something that can be done, though, which renders the questions useless.
There is the well-known story of Doug Casey and about the bottom ticking of the market in the ’70s. Doug Casey worked as a broker and had to deal with a client’s order who later denied the purchase. The broker committed to his own advice and purchased the shares then in his name. Right at that moment the market hit the bottom. Doug Casey, however, had no idea of what was happening with the market that day. He knew about the good prices and the fine stocks, but that was all about it. In any case, it was enough to make a clever speculation.
In 2001, a similar event happened. It was another bottom for the market; Sprott Global’s Rick Rule was very early with his investment, considering the bottom. However, the return was a stunning 20:1. Rick Rule did not try to time the market; his only interest was to buy for a low price. Therefore, one can make a great amount of money without even trying. No speculation is the guarantee to getting rich.
The Winning Scheme Today
Sometimes we have to choose between preserving money and making money. When choosing the first, we make no speculation and no move on the market. Casey Research has been recommending a special model designed for the crisis, which would consist of:
- 33% equities,
- 33% liquidity,
- 33% gold.
Some who are aware of the gold price in Dubai today are investing much more in gold, because trends, experience and past events have shown that such moments are ideal for an investment in precious metals.
Soaring Demand in Asia
This is a time for intense speculations. Many prefer to keep an eye on the gold price in Dubai today because the Asian market is where a lot of moves are happening at the moment. The gold demand in Asia is about to hit a record. The World Gold Council has confirmed the trend and Western investors became confused by this situation. The physical gold demand grew a lot stronger. In the second quarter of the year, more records are expected. In April, net gold imports into China were up to 170 tonnes and could go beyond 800 tonnes. In India, the demand is expected to be between 860 and 960 tonnes, as it was forecast for this year.
Letting the Asian Market Inspire the Next Move
Here is another tip from seasoned investors and financial observers: you can analyze an Asian market – for example you may check the gold price in Dubai today to see the trends and the current situation. It will inspire you greatly in your next move. You will compare the costs and also see the demand. The physical demand is not going anywhere lower, on the contrary. The next trend report will be published by the Council in mid-August. Starting with the historical moment if this April, the Western gold community is no longer that relevant when it comes to gold costs. It is the Asian era now. The paper markets in the east will also be going stronger than those in the west. The Easterners are buying gold regularly. Take a look at a daily gold chart and you will see the truth in this analysis.
Price Guidance Is Essential
There is much to learn from the Eastern charts, as Asia knows a real exposure to gold. If you take a look at the gold price in Dubai today, you will see the low values. Yet, the investors believe this won’t stay like this and the costs will begin to increase again. The US investments had a great involvement in the spring sudden drop, but now the wheel is turning and the East is making its influence known.
There is still plenty of time to take advantage of the good deals. It doesn’t really matter where the bottom is at this point; it is the cost and the opportunities. It is time to assess the situation. Keep in mind that buying low is not risky. You can start doing your own research and firstly you need good price guidance for this. Begin by reading the available news and watch the gold price in Dubai today.
