-- Published: Friday, 17 April 2020 | Print | Disqus
Focus is on how the world will move once the various nations open up. Gold and silver will break free from the recent range trade and form a new range. No need to worry. I will prefer till next week and then make decide on whether to make a new investment in gold or wait. In the short term selected stocks will give a much better return than gold. Silver should outperform gold as prices moves showed that it more an industrial metal than a precious metal.
World will open and be near normal from June. The second wave of the corona virus crisis (if it happens) will cause a long term damage to global economic growth. Awareness is there. A lot of people and households will maintain social distancing till vaccine is not available. Consumption pattern will change in the so called developed worlds. Gold will see higher investment demand and higher physical demand in USA, UK and Eurozone. Asia has been the epitome of physical gold demand. A combination of sustained higher physical demand for gold from continents (other than Asia) will be the key reason of next wave bullish trend for gold. Distress of physical gold will be over in the next two months worldwide. New gold investors should invest for a minimum period of one year in both gold and silver. The pace of rise of gold can slow for the rest of the year but not the actual rise. The T20 cricket game for gold bulls will be over by next month. Gold traders and gold investors need to be prepare for five days test cricket match.
INDIA
Most large business in India is opening up next week. Exporters off kinds are allowed to work at full capacity. (with social distancing). E-commerce is allowed to open but small and tiny business are forced to close. There will be huge joblessness in unorganized sectors in India but organized low paying sectors will see massive employment surge in the short term. Corona virus spread has resulted in very little damage to Indian economy. Corporates are just exaggerating to get more relief from state. In India very few corporates pass reduced taxes to consumers. In India, interest rate cut by the RBI rarely benefits the common man. State policies are biased towards lobby from large corporate groups. State policies in India are biased towards foreign investors. Domestic companies never get a level playing fields. There will be a big surge in takeover by foreign companies. Bailouts out money will be used by global corporate mafia to buy companies all over the world and not just India. To hedge yourself against the post corona virus world maker over, everyone needs to increase investment in physical gold and physical silver.
COMEX SILVER MAY 2020 – current price $1568.50
· Silver needs to trade over $1480-$1510 zone for the rest of the month to rise to $1705 and $1860.
· Crash will be there only if silver trades below $1480 for the rest of the month.
NYMEX CRUDE OIL (1st Contract) - current price $20.0
· Crude oil needs to trade over $18-$19 zone to rise to $25.00.
· Crash or another wave of sell off will be there below $18.00.
Disclaimer: Any opinions as to the commentary, market information, and future direction of prices of specific currencies, metals and commodities reflect the views of the individual analyst, In no event shall Insignia Consultants or its employees have any liability for any losses incurred in connection with any decision made, action or inaction taken by any party in reliance upon the information provided in this material; or in any delays, inaccuracies, errors in, or omissions of Information. Nothing in this article is, or should be construed as, investment advice. All analyses used herein are subjective opinions of the author and should not be considered as specific investment advice. Investors/Traders must consider all relevant risk factors including their own personal financial situation before trading. Websitewww.insigniaconsultants.in. Prepared by Chintan Karnani
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NOTES TO THE ABOVE REPORT
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-- Published: Friday, 17 April 2020 | E-Mail | Print | Source: GoldSeek.com
