Sunday, June 22, 2008

Gold Glitters as Stocks Take A Beating

Stocks are on a downward spiral, real estate is not moving, interest rates are skyrocketing and prices on consumables are headed so far north that milk no costs more than gasoline. In this time of double digit inflation, what if anything is a worthwhile and safe investment option? The answer is gold. Gold prices have been either climbing or holding steady at all time high prices for the last several months. Gold prices are once again on the rise and are very very close to once again reaching the all time high set in March of Rs 13,112 per 10 gm, touched on March 18, 2008. If the current trend in the global and domestic bullion markets continues, experts say the it is very likely that the price of gold may ascend that peak in the coming week. A senior fund manager of a gold mutual fund told TOI that if inflationary pressures continue, the price of gold might cross Rs 15,000 per 10 gm before the year-end . September marks the beginning of the annual festival season which traditionally sees a gold buying frenzy. When historically trends show that gold always becomes costlier when oil prices surge internationally, it’s hard to dismiss the fund manager’s argument as far-fetched . According to TOI on June 21, gold represents a nice investment option for attempting to cope with inflation devaluing their savings. Returns on investments in gold mutual funds have been higher than those in equity, debt or other investment options over the last one year which would tend to prove the prediction true. In this period, gold has yielded a return of 47.6%. In the current calendar year, the return has been 19% so far. Ketan Shroff, one of India’s biggest bullion merchants, said "if the depreciation of the rupee continued, gold prices would remain strong." Avadhesh Agrawal, president of the Delhi Bullion and Jewellers Association, also predicted that, "the price of gold would cross Rs 15,000 per 10 gm in a few months because of the rise in crude prices and weakness in the Indian currency."Discover what rising gold prices can mean to you. gather your unwanted gold, scrap gold and broken gold jewelry and send it to us. Our refiners pay you the most for your gold.

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