By Hardeek Patni -
Spot Gold jumped off the cliff on December 4, 2009 with a $65 single day fall yet again. It gave up about two weeks’ gain in a matter of 3 days leading to confusion and chaos in the market. Many traders must be questioning themselves – Is this IT? Has the bubble burst? Do I sell now? I say NO we are not there yet. The bubble has not burst and its time to buy not sell. There is a lot of fear in the market at this point since the Dubai World news.
One thing most of us need to know is that the Abu Dhabi (capital of U.A.E) government is ready to support most of the Dubai debt. Investors need to calm down because over the span of 6 months the situation will be better in Dubai. The sell off in Gold due to the Dubai crisis shows the panic in markets. There is an old saying: the best time to invest in a market is when panic and fear are at a high.
