It's gold that's shining the brightest at a time other investment options, equity and real estate, have been hit by the crisis in the global economy and land acquisition problems, respectively.
Even as we saw domestic equity markets fall sharply due to fears of recession and lack of reforms, and the real estate sector mired in land acquisition controversies, the price of gold breached Rs 26,000 per 10 gm in the domestic markets on August 9, 2011.
Market experts remain bullish on the future movement of the yellow metal as investors turn towards gold during times of uncertainty, like the one we are in right now.
Naveen Mathur, associate director-commodities and currencies, Angel Broking, predicts that gold may hit Rs 28,000-Rs 28,200 per 10 gm by the the end of the calender year.
Lakshmi Iyer, head of products, Kotak Mutual Fund, says, "We see gold prices rising 10-15% further in the next few months."
World gold demand rose 11% to 981.3 tonnes in the first quarter of 2011 compared to 881 tonnes a year ago. But demand declined 2.2% from 1,003.7 tonnes in the last quarter of 2010. Jewellery demand, which accounts for 57% of total gold demand, stood at 556.9 tonnes in the first quarter of 2011.
