Will Gold Continue to Charm Investors?
Source: Commodity Online (4/7/10)
"Why are people bewitched by gold when other metals. . .have outperformed gold as far as investment is concerned?"
What is that lures people to invest in gold? Why are people bewitched by gold when other metals like platinum, copper, nickel and zinc have outperformed gold as far as investment is concerned?
People love to buy gold for two main reasons: investment and jewelry.
Noted bullion analyst Mark Robinson says that gold has charmed people from time immemorial. "If you study the history of gold, you come to know that people and rulers have been mesmerized by the passion to own gold. People continue to be fascinated by gold because the metal has withstood the test of time as the soundest investment in the world," he points out.
Gold is these days trading around $1,100 per ounce. Nearly nine years back in 2001, gold was trading around $255 per ounce. So, in the last one decade, there has been more than 400% increase in the price of gold.
Gold price reached a historic record of $1,227 per ounce in December last year in the wake of India's purchase of 200 tonnes of gold from the International Monetary Fund (IMF). These days, gold funds and investors are focusing their attention on China, as the dragon country has announced that it wants to take its gold reserves to a whopping 10,000 tonnes in the next 10 years. Currently, China's gold reserves are a little over 1,000 tons.
Now that there is a hue and cry over investing in gold, it would be prudent to know the status of gold in the world.