Sunday, April 26, 2009

Gold is Gold for ever!

The global recession is not going to recede soon and the current equity rally is likely to fizzle out; the several experts opine this. The trillion dollars package announced by US in G20 summit to counter current global recession may induce inflationary trend in the market all over the world. In this never seen before situation, the obvious question is where to invest? In any situation when the economy of any nation went tumble tosser, gold used to be considered as safe haven for investors. Till recent months this has been true for Indian investors but with dollar price rising high; the gold price is too high to attract investment. Do you know year 2008 was a year of gold! The Indian gold exchange traded funds (ETFs) have given returns around 26.5% ; the highest amongst any asset class that gives return, during financial year 2008-2009. That to when the global economy has been reeling under the pressure of recession.
Now, the gold price touching the new high $1002.2 per ounce during February 2009 now has come down to $864 on 17th Apr. As reports suggest if gold price in the international market comes down below $855, then it may go down further by another $40-50. At that point fresh purchases can be made; in fact there are some commodity experts who feel gold is attractive for investment when it hovers around $855-860 band.
However, this blogger feels gold is gold forever, even when it is old.

1 comment:

AMIT said...

Yeah right Gold is Gold.

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