Should you buy gold now? Here's what the experts are saying

Last Updated: Mon, Oct 05, 2015 19:01 hrs

Gold prices are falling.

But there're also a lot of prospective buyers who are staying away in the hope that prices will fall further.

For them, here's what the experts are saying:

"My view is that once the US rate hikes are announced, it could signal a turnaround for gold. Also, current prices are around or below the cost of production for many mines in the world. This could be provide fundamental strength going forward. I view this as an opportunity for long-term investment in gold. That said, there is scope for further downside in the short-term and timing the market while doing bottom picking is tough," - Gnanasekar Thiagarajan,'s expert on gold in his analysis

"Gold prices are projected to fall 12%, largely driven by expectations of a rising dollar and tightening in US monetary policy. Investment demand will continue to be a key driver to precious metal prices going forward. Downside risks include stronger-than-expected monetary tightening and dollar strength, while significantly weaker US growth (and the ramifications for the dollar and monetary policy) generate upside risk," - The World Bank in its quarterly Commodity Markets Outlook report published in July 2015

"As far as India goes, a big negative for gold is diminished rural purchasing power. Given that an estimated two-thirds of India’s gold demand comes from rural areas, lower crop prices and a not-so-good monsoon so far is not good news for bullion traders and jewellers," - Leading business journalist Harish Damodran on Why is gold falling, and where is it headed?

"The risks are clearly skewed to the downside in this environment. There is a probability that the market trades below $1000 this year ((it is around $1100 at the moment) given our broader commodity view. With the more positive outlook on the dollar, and with debasement risk starting to fade, the demand to use gold as a diversifying asset against the US dollar becomes less and less important," - Jeff Currie, head of commodities research at Goldman Sachs, who first suggested selling gold in 2013

"It is going to be foolish to be a gold bull right now. The gold bugs would have to wait for their day, but equally I don't think it is going to be a complete collapse from here either. Gold may be headed lower but I don't think it's set up for an outright collapse like what we saw in iron ore over the last two years," - Vishnu Varathan, senior economist at Mizuho Bank.

"That's really a bearish sign (for gold), when the main consuming region (India and China) remains on the sidelines after such a price drop to a multi-year low. Who's going to buy gold if not the Asians," - Carsten Fritsch, Commerzbank

And finally... The guru of valuation on gold

"As a complete novice in assessing the value of gold, here is how I see its value. As a stand-alone investment, I would not buy gold, given its history (of delivering low returns in the long term) and given how it is priced today. As insurance, though, I think it makes sense to add to your portfolio. You don't have to be a conspiracy theorist or paranoid about central banks to have legitimate fears that prices in financial markets, built upon uncommonly low interest rates, may collapse," - Aswath Damodaran, considered by many to be the Guru of valuation

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