Thursday, August 16, 2007

Gold Is Stable Amid This Stock Carnage

There is a old saying that in troubled times rely on Gold, well, that's seems to be the choice investors are choosing amid sell off's in stocks across the world. Gold is trading stable at U.S.$660 per ounce and so far escaped the carnage from stocks melt down. This precious commodity will continue to out-perform stocks in the short term as investors will consider it as a safe investment bet in these nervous and volatile times. As their is a serious erosion in the risk appetite of investors/traders, safer investment avenues like Gold and currency like Dollar will find favour. For the few weeks, stocks will bear the brunt of this yen carry trade un-winding currently under way. However, some very selective buying can be made in extremely resilient business fundamentals, but in very small quantities.It's however an individual choice and decision.