For investors, all that glitters is gold!
13 Nov 2012 1:40 AM GMT
Amit Jain, a small-time trader, bought gold coins or guineas worth Rs 60,000 from a Kalkaji shop on Sunday. ‘It is investment,’ he says. The price of gold may have gone up from Rs 26,850 per 10 gms (for 24 carat gold) last Dhanteras, to Rs Rs 32,500 per 10 gms this year, but if anything, it is making investors park more in the yellow metal.
The focus turned to gold with the weakening of the US economy and the Euro crisis. ‘Big-ticket, short-term investors who would earlier invest in currency, started parking their money in gold,’ says Pankaj Parekh, vice-chairman, Gem and Jewellery Export Promotion Council. Gold Fields Mineral Services figures show the demand for gold bars and coins went up from 55.6 tonnes in the first quarter of 2012 to 56.5 tonnes in the second quarter of 2012. ‘For the last 10 years, gold has given a yearly growth of 25 per cent,’ says Parekh.
The hike in the price of gold has changed buying trends for normal domestic consumers too. ‘Gifting of gold at weddings and other occasions has come down. But even general buyers want to buy a piece of the yellow metal during festivals,’ says Parekh.
Investment in gold, however, may not be good for an economy ‘Investing in gold does not bring the money into production, unlike in bonds,’ explains Amitabh Choudhary, entrepreneur.
The focus turned to gold with the weakening of the US economy and the Euro crisis. ‘Big-ticket, short-term investors who would earlier invest in currency, started parking their money in gold,’ says Pankaj Parekh, vice-chairman, Gem and Jewellery Export Promotion Council. Gold Fields Mineral Services figures show the demand for gold bars and coins went up from 55.6 tonnes in the first quarter of 2012 to 56.5 tonnes in the second quarter of 2012. ‘For the last 10 years, gold has given a yearly growth of 25 per cent,’ says Parekh.
The hike in the price of gold has changed buying trends for normal domestic consumers too. ‘Gifting of gold at weddings and other occasions has come down. But even general buyers want to buy a piece of the yellow metal during festivals,’ says Parekh.
Investment in gold, however, may not be good for an economy ‘Investing in gold does not bring the money into production, unlike in bonds,’ explains Amitabh Choudhary, entrepreneur.
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