December 14, 2010

G-20 Effect

Last three months - which coincided with spring and summer in the northern hemisphere, world gold prices will be relatively low and be a good time to invest in Dinar.
 
This opportunity became more open again in conjunction with a meeting of leaders of countries belonging to the G-20 in London that took place since yesterday.
 
G-20 meeting is as interesting as the earth's gravity objects down, then the world gold price had come down significantly because of the influence of G-20 meeting this or I will term the G-20 Effect. Two things that I think the clear relation between the G-20 is the decline in world gold prices.
 
First with the G-20 despite leaving a lot of homework on each member state in particular and the world at large, at least has given hope to the market that the crisis will end. Hope this is enough to move the capital markets to back passionate, almost all world stock markets experienced a significant increase in positive sentiment yesterday because of this.
 
Because the world's investment funds have to compete between investing in the stock market, gold etc., so with increased investment in capital markets, funds that invested in gold declined. Demand declined while gold supply is relatively not moving - so gold prices fell.
 
Both the direct hit gold prices yesterday was the support of G-20 on the IMF to realize its plan to sell gold that has been planned since last year amounted to 403.3 tons.Perception will be additional gold supply this much response from the market with gold selling pressure before the price dropped again.
 
Actually the trend in gold prices tend to be low because of the G-20 would be good if you can bring or suppress the gold price at a relatively low value as it is now quite long, so Dinar more affordable and can be more easily disseminated to the public.
 
The problem is the result of such meetings of the G-20 this would not necessarily bring concrete results for each country. When world leaders are behind in their respective countries, they again have to face the reality that is not easy.
 
G-20 star Barack Obama for example, when returned to the U.S. she would soon forget his promise to the country G-20 member countries, especially French and German demands to tighten control over the financial industry. Obama will return to its original plan to save the crisis in his country with the stimulus and the stimulus again, the bailout and the bailout again until they are no longer able to bailout any more like was aimed at by the demonstrators outside the meeting G-20 in the image above.
 
IMF plans gold sale to realize it could be ambiguous. Could be this for the umpteenth time just a mere issue, because it is not actually selling gold which they were going - but just only for playing his only issue - that depressed gold prices and currency values are automatically used to buy gold (mainly U.S. $) looks mighty.
 
Or indeed the IMF will really sell the gold, even bigger than the original plan - such as news circulated around the meeting of G-20. If this second possibility is correct, it means that this time the IMF really need money a lot. This need is likely to responding to requests for assistance from countries hit by the crisis, said the queue was so long that the IMF should sell good assets to be able to carry out its role. If this second possibility is correct, it means that this crisis could be worse than that visible on the surface.
 
Either way, for long-term gold investors or for the proper functioning of gold as a store of value - a decrease volatility of gold prices these days can be a good opportunity to secure assets. While the world again get wind of heaven is blown from the G-20.When the winds of heaven are gone next week or next month - the market is likely to run normally, which means that gold will tend to be expensive.
 
For short term investors (less than 6 months) I would recommend not to go into gold or Dinar these days (and whenever) you could be disappointed if the short-term results you expect. Allaah knows best.