International gold prices continue to shining bright, evoking both euphoria and skepticism over whether the upmove could further sustain, and more importantly if the rally has more steam.
Prices tested $2,300/oz level on April 4 on rising hopes of a rate cut this year by US Federal Reserve, after chairman Powell said it is likely appropriate to begin lowering US interest rates 'at some point of time this year'. The ongoing rally in gold prices has seen a record high each day this week. 'There doesn’t seem to be a particularly good, fundamental reason that is clear and available to everyone to pin the move on', Kyle Rodda, senior market analyst at Capital.Com told Bloomberg on April 4. Still, market participants are attributing the move to concerns over middle east and Ukraine which may have likely spurred safe haven demand, as well as buying by central banks.
Gold's upmove could be better understood with the ageless wisdom of the market masters and legends of investing, who have taken positions on either sides of the precious metal over decades.
Warren Buffett
“If Martians were to observe the activity of human beings for many many years, they would not understand one of their activities: They are digging something yellow out from the ground, process them and put them in the vaults and never touch them again.”
Sir John Templeton
"I haven't made a dollar out of gold. I just never felt the odds were in favour of buying gold bullion or gold-bullion shares. I have considered them many times over 40 years, but each time other things seemed to be more reliable and less subject to political problems."
Charlie Munger
"I think gold is a great thing, to sow under the garments of your Jewish family garments in Vienna in 1939, yet civilised people do not buy gold, they invest in productive businesses."
Peter Munk, Chairman, Barrick Gold
"I really have no ability to forecast gold prices. I have been in the business for 30 years, and it occupies my mind day and night.”
Howard Marks
“There is nothing intelligent to be said about gold. Nobody can tell you the right price for an ounce of gold. People will tell you it should go up or go down. To make any intelligent statements about investments you have to know what the right price is. You can’t do that with an asset like gold, which doesn’t produce any cash flow. So you can buy it out of superstition or ignore it because you are an atheist but you cannot buy it with an analytical foundation.”
Bill Ackman
"I’ve never believed that gold is an investment asset. Would you rather have faith in that, or McDonald's (MCD), which has 32,000 stores?”
With inputs from mastersinvest.com
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