Christmas of 2019 I had advised to invest in gold and silver for Easter of 2020. Now I am asking to invest in gold and silver this Easter for Christmas of 2020. Overall gold and silver will continue to rise till Christmas. Even if the corona virus pandemic gets over and a vaccine is found (before Christmas of 2020), gold and silver will continue to rise.
There is an over $40 price difference between comex gold June futures and spot gold. This reflects gold demand far exceeding gold supplies. Mines are closed or on the verge of getting closed.
War ships have sailors with corona virus. Armed forces, law enforcement to a beggar all are getting gripped by the corona virus. Rich and wealthy are chasing physical gold to get over the debasement of currencies and all paper asset. Gold and silver are the real money.
HOW WILL JEWELERS COPE WITH RISING GOLD PRICES
Simple make and sell eight carat hallmarked gold jewelery. Ask your jewelry association (of your city and your nation) to give permission to make and sell eight carat jewelery. In my view humans cannot make eight carat jewelry. Only machines can make eight carat jewelry. You need to retool.
Start making silver jewelry. Bangkok silver jewelry has some excellent designs. I am personally a big fan of Bangkok silver jewelery. In India silver jewelers in Jaipur have exhibited that they are one the best. They bring new eye catching designs very quickly.
Diamonds, colored stones etc are there. They are not the volume churners. Every business or service must have something to offer which becomes a volume churner. Silver jewelery and eight carat jewelery in my view are the volume churners for a jeweler.
(There will be big dent in the demand for gold jewelery. There will be distress sale of gold jewelry all over the world. The only way for jewelers to survive is innovation and some weird thinking.)
COMEX GOLD JUNE 2020 - current price $1730.60
? Gold needs to trade over $1696-$1708 zone to rise to $1780.
? Sellers will be there below $1708.
MCX Gold June 2020: (previous day close/CMP Rs.45656.00)
1. Gold needs to trade over 45200 till Wednesday to rise to 46156 and 47108.
2. Sellers will be there only below 45200 till Wednesday to 44652 and 44255.
3. Key resistance is at 46156.
(prices in Indian rupees above)
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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