in gold has proved to
According to the jeweller community, those who purchased gold in bulk last year when the prices were low are in profit. "For example, those who had bought 100 gram of gold on August 17 last year when the prices of gold were Rs 11,300 for Rs 1,13,500 against the present price of gold at Rs 15,100 would have made a profit of Rs 36,600 as on the current date," said Pushpendra Jaiswal, convener of Akhil Bhartiya Swarnkar Parishad.
It being looked at as an investment option with no loss of security money, small investors are going for the yellow metal, said Pushpendra and added: "The ones who had invested in gold last year have earned a good profit and thus, are investing more in the hope that the prices may rise further."
With the financial meltdown world over and crash of stock market, gold and gold jewellery are definitely high on investors' list. In addition, buying gold biscuits at this time is a safe investment for the investors.
Agreed Mahesh Paraswani, another dealer in gold and gold jewellery and he said, "Investment in gold has definitely become a good option for small investors as gold buying is also prompted by fears that prices may rise further. It has been a trend that against the shares and investments in other items, rise in gold prices by 15-20 per cent has been observed every year."
However, demand is good for solid gold and not for gold jewellery. Everybody is demanding solid gold, mostly from jewellers, said Mahesh.
The gold analysts have even predicted a further rise in gold prices buoyed by strong investment demand. "It is being expected that by year 2010 the gold prices are likely to surge high by another 15-20 percent," said another dealer.
Price of Gold in past 7 years on August 10
Year Gold price
(Rs per 10 grams)
At Present 15000
# In 1978, the price of Gold was Rs 660 per 10 gram
# Gold price was at an all time high in February, 2009 at Rs 16,400 per 10 gram.
Source : Times of India