Gold is glittering and how! While most investors may be ruing the fact that they aren’t blessed with a similar affliction like Midas, 33 years later, you would be a satisfied investor today, if you are one of those lucky ones who had invested Rs1 lakh in the yellow metal in 1979. For, your investment today would be well above Rs32 lakh at the current value of gold.
And, if industry experts are to be believed, time isn’t running out for you even now. Invest Rs1 lakh in gold right now, and there are possibilities of equal returns in the yellow metal and that too, in a shorter span of time. The precious metal touched Rs1,000-mark in October 1979 for the first time and 33 years later, it has breached the Rs32,000 per 10 gram mark in September this year, a jump of 32 times.
Interestingly, what took the first three decades (1979-2009) to achieve in terms of rise in gold prices, the last three years (Sep 2009 to Sep 2012) matched it. Between 1979 and 2009, gold prices increased 16 times and reached Rs16,000 per 10 gram. In last three years, gold prices have doubled from Rs16,000 in September 2009 to Rs32,000 in September 2012.
On Thursday, gold price increased by Rs325 and closed at an all-time new high of Rs32,250 per 10 gram in Ahmedabad. In last two weeks, gold prices rose by Rs1,000 as it crossed the Rs31,000 mark in city. Along with gold, even silver is on bullish trend. The price of metal shot up by Rs1,200 to close at Rs60,200 per kg Thursday.
Experts believe that price will continue to rise in India. “In last 33 years, gold shot up by 32 times. In last 12 years, gold shot up by more than six times and in last three years its prices have doubled. In history, the gold prices have stabled but have never seen huge correction. In coming years, price will touch level of Rs35,000 and Rs40,000, and soon,” said bullion trader and analyst Girish Choksi. He said that looking at the history of gold prices, investors should continue to put money in gold.
The credit of multi-fold rise in gold price in last three years goes to Indian currency, believes analyst and MD & CEO of Dhanvarsha Fincap, Nilesh Kotak. “In September 2009, Indian rupee against dollar was Rs39 which has depreciated to Rs56 in September 2012. In international market, price of gold is far from its peak.
However, the prices of bullion are rising globally. But due to depreciation in currency, the gold prices have been touching new peak in last three years. Till currency keeps depreciating, the gold price will continue to rise in India,” said Kotak. Due to new high in gold price, the demand has certainly fallen down, said director of AB Jewels, Manoj Soni. “At present, demand for jewellery is almost negligible as prices remain high
and wedding season is also far away,” he said
