ColinchiAll your talk about gold taking the lift down etc is...

Colinchi

All your talk about gold taking the lift down etc is fine. Let me give you another analogy.

Lets consider a boxing match where one of the boxers (US gold sellers) have come out swinging (sold around 700t of Au) within a 12 months (first 3 rounds). The opponent (Asian investors) have absorbed all the punches and are still standing. There are still a number of rounds remaining (say 2 years) and your favourite (US sellers) has used up about half the energy (SPDR remaining holding 800t).

It is 300M US sellers against over 2000M (China and India). The shock strategy adopted by US sellers has is wearing off.

To appreciate the standing of gold in Indian society, you need to attend an Indian wedding (not necessarily wealthy individuals). That demand is going to only increase as the population grows and economic conditions improve.

In shorter term ... once the Indian elections are done with:

1) the Indian rupee is likely to appreciate
2) gold price in Rs will decline
3) taxes are going to lowered
4) restrictions (80/20) as well as amount of cash that can be carried waived

As long as SLR does not blow up due to operational issues... you can work out what it means to the share price.

All this talk about 100 / 200 etc day moving average is fine. How about 100 / 200 years moving average ... what does the trend suggest?