November 21, 2010

Stages In Crisis And Its Effect on Gold Prices ...


World liquidity crisis has not seemed to increase, it could be now the world toward a crisis summit. The indicator is the world's major institutions began to blindly sell its valuable assets - including gold reserves. - To try to overcome liquidity.


European Central Bank (ECB), for example, newly discovered by the market if it turns out they have been forced to sell some 7.6 tonnes of gold during last week. According to MarketWatch large institutions such ECB does not sell gold but because destitute - ya need liquidity earlier.


Because of this liquidity destitute situation is widely implicated, then the inevitable world gold prices fell yesterday. Despite this decline in world gold prices is not necessarily in line with the local gold market; physical gold market, especially in Indonesia may not necessarily fall as sharp as the world gold price.


Firstly because gold has not become a significant component of investment for institutional investors, Indonesia, so not much is selling gold because it's not much to have them.


Secondly because it could be a liquidity problem in Indonesia is not as bad as that experienced by other countries - hopefully so, so for investors mostly poor people are not in a position to sell its valuable assets.


So Should we now multiply the composition of the dinar in gold or our investments - while cheap-cheap prices again?. The answer depends.


Illustrations besides maybe can help you plan your investment and protection values.


If the fund if we have the will we need in the near future - less than six months for example - then exchange it into gold / Dinar not necessarily be the right choice. When you need the price of gold / Dinar can be still relatively low in six months.


Conversely if you have funds you will use for long term purposes such as school fees and pilgrimage for example, then secure it in the form of physical assets such as gold or dinar could be your best chance at this time .... While you are still valuable paper money very good now. Allaah knows best.


Disclaimer:


Despite all the writing and analysis on this blog are the product of careful study and from sources that are generally trusted in the business world, capital markets and financial markets, we are not responsible for any loss whatsoever caused by use of analysis and writing on this blog either directly or indirectly.


The responsibility of the reader alone to conduct the necessary studies of the sources of this blog or other sources, before taking decisions relating to investment gold, Dinar and other investments.