Gold jewelry will be much cheaper in few months, precisely in the summer, as price of gold would decline up to $1200-$1300 per once.
Gold possession is what everyone desire. Men used as a store of value for their money, while women appreciated tremendously as gifts and demonstrations of wealth and status. We can also look up throughout the history for evidence in support of this statement, if you are not yet convinced. The luster commodity has always been the favorite precious metal all around the world. Gold has been used in luxurious thrones, royal crowns, prized jewelry and even priceless paintings. The metal is a symbol of divine power, beauty and grace. Its shinning appeal has allured everyone from pirates to royals. Yet, it still does even today. Possession of gold jewelry is something still important to many, even in the technology age.
In 2013, the average price of gold is expected to fall or the first time in 11 years. Investors are to scale back bullion purchases as worries for devastating market events fades away. That would provide a great opportunity for jewelry buying at lower cost.
Year to date the yellow metal is down by 4%. If all the analyst forecasts prove right, 2013 could turn to bring the end of the golden era. The bullion has been on a 12-year bullish run that peaked to a record high above $1,920 per ounce in September, 2011.
During the first quarter of 2013, top bullion banks such as HSBC, Goldman and Barclays have all cut their gold price projections. The bearish forecasts are in respect of the improving US economic outlook and the likely end of Federal Reserve’s bond-buying program.
Read more:
- Societe Generale marks the end of gold era with a forecast cut
- Credit Suisse cuts gold price outlook for 2013 – 2014
Societe Generale analysts are most bearish on gold. They forecast a yellow metal price of $1375 per ounce by the end of the year. The price target of $1375 assumes a 13% drop from today’s levels till the end of 2013. Though, analysts also expect a bear scenario in which gold would perform even worse than their current projection. As we are already witnessing the sharp decline since few days, it is very likely that prices would slump far further in the second quarter of 2013.
In respect that would benefit all the jewelry buyers who are waiting for the right time. As gold falls further, prices will drive an influx of retail to the jewelry market.
The summer, sometime between the beginning of July and the end of August, most probably would be the best time to buy gold jewelry, in our views. The prices always tend to rise after the end of August. That is mostly because at this time of the year gold jewelers typically do their biggest deals.
This year, the Muslim holy month of Ramadan will very much likely initiate this trend. It usually ends with generous gift-giving. Briefly comes the post-monsoon wedding season in India. Afterwards, in November comes one of India’s most important festivals – Diwali. As autumn advances, the jewelry makers in Europe and US kickoff before the Christmas shopping frenzy.
Considering the latest bullion price forecasts and the seasonal trends, summer would be the perfect time to buy gold jewelry for personal use.
