Posted in Finance, Accounting and Economics Terms, Total Reads: 129
Definition: Gold Bull
Gold bull refers to phase when gold prices are increasing regularly, and expected to rise in future as well. Thus the prices increases year by year. As inflation leads to losing the value of money in hand people prefer investing in gold which can be sold in future and thus give higher return. The Gold market is considered to be safe place to invest and moreover with increasing inflation rate the prices of gold is expected to rise but sometimes the market is considered to be extremely volatile.
Bull market for any commodity or stock is defined as the phase when the price of commodity or stock is increasing regularly and is expected to increase in future as well. Moreover, the bearish market is used when the prices of commodity or stock is falling continuously and expected to fall in future as well. The criteria are rise in prices are for long time and are not for short period then only it is considered as bullish market.
But whenever comes to individuals they prefer investing in gold than any other market especially in India. Whenever any other market start falling individuals take out money from these markets and start investing in gold so thus sometimes the bearish phase market can lead to bullish phase in Gold, India faced gold bull market for almost 11 years when prices increased continuously from 2001 to 2012.
As we can see from the graphs the prices from 2001 to 2012 have increases drastically thus this is a true example of a Gold bull market. But right now gold market has become little slow, the prices are falling. Since 2012 the prices of gold are on falling stage but is expected to have an increasing price phase soon.