Sunday 2 January 2011
Saturday 1 January 2011
Gold in record high !!!
Sunday, January 02, 2011
By Gohar Ali KhanKARACHI: Gold climbed to a new high of Rs45,650 per tola (11.665 grams) on Saturday as the precious metal neared its highest level in the international market, whetting appetite for the metal, dealers said.
Gold skyrocketed by Rs250 to hit a record high of Rs45,650 per tola and by Rs214 to Rs39,128 per 10 grams, surpassing the previous record of Rs45,575 per tola and Rs39,064 per 10 grams on December 7. In the international market, spot gold rose by $8 to $1,421 per ounce.
Silver also rose by Rs20 to touch the highest level of Rs995 per tola and by Rs17.14 to Rs852.85 per 10 grams amid an increase in the world market, breaking the previous record of Rs975 per tola and Rs835.71 per 10 grams on October 7.
The yellow metal was on track for about 30 percent gain in 2010 in both local and international markets, while silver gained 80.56 percent, investors sought the white metal as an alternative to gold.
“A weaker dollar and global economic uncertainty helped the precious metal make another new record in both local and international markets,” said Haroon Rashid Chand, president of All Sindh Saraf and Jewellers Association.
However, traders and analysts expect gold to cross $1,500 per ounce in the world market and Rs50,000 per tola in the domestic market in 2011 on account of volatile currency and stock markets in the wake of Europe’s debt crisis and weaker the US economy.
Highlighting reasons about soaring costs of the yellow metal, he said the precious metal climbed the highest level in the local market due to factors, including runaway inflation, depreciating rupee against the US dollar, a host of new taxes, increasing unemployment, and deteriorating economic and political conditions of the country.
He predicted that bullion rates would edge up further, as China and India have been busy lifting gold in bulk, while Iran has been buying silver in tonnes from the international market.
Gold skyrocketed by Rs250 to hit a record high of Rs45,650 per tola and by Rs214 to Rs39,128 per 10 grams, surpassing the previous record of Rs45,575 per tola and Rs39,064 per 10 grams on December 7. In the international market, spot gold rose by $8 to $1,421 per ounce.
Silver also rose by Rs20 to touch the highest level of Rs995 per tola and by Rs17.14 to Rs852.85 per 10 grams amid an increase in the world market, breaking the previous record of Rs975 per tola and Rs835.71 per 10 grams on October 7.
The yellow metal was on track for about 30 percent gain in 2010 in both local and international markets, while silver gained 80.56 percent, investors sought the white metal as an alternative to gold.
“A weaker dollar and global economic uncertainty helped the precious metal make another new record in both local and international markets,” said Haroon Rashid Chand, president of All Sindh Saraf and Jewellers Association.
However, traders and analysts expect gold to cross $1,500 per ounce in the world market and Rs50,000 per tola in the domestic market in 2011 on account of volatile currency and stock markets in the wake of Europe’s debt crisis and weaker the US economy.
Highlighting reasons about soaring costs of the yellow metal, he said the precious metal climbed the highest level in the local market due to factors, including runaway inflation, depreciating rupee against the US dollar, a host of new taxes, increasing unemployment, and deteriorating economic and political conditions of the country.
He predicted that bullion rates would edge up further, as China and India have been busy lifting gold in bulk, while Iran has been buying silver in tonnes from the international market.
Indian Gold Market Booming !!!
Gold, silver may still shine
First Published: 21:05 IST(31/12/2010)
Last Updated: 21:06 IST(31/12/2010)
Last Updated: 21:06 IST(31/12/2010)
Gold is back in a big fashion as an investment option after recent gains, and analysts say there could be more left in it — and as a relatively risk-free option that could outstrip bank deposits or other short-term instruments. Gold and silver are expected to generate returns in the range of 18-22% in 2011, when stock market is expect to remain volatile and inflation will dent the returns from bank’s fixed deposit.
“Gold is expected give returns in the range of 18%-20%, while silver may generate 20%-22% in 2011, on the back of a strong demand,” says Ritesh Jain, head, fixed income, Canara Robeco.
Of the total amount allotted for fixed income investment, one should invest 30% in gold and silver. Between gold and silver, 70 % should be in yellow, he said.
The demand for gold will continue to be strong in India, the largest jewellery market in the world. In 2009, India bought around 551 tonnes of gold, while by October 2010, the figure was around 730 tonnes. Jwellery, which constitute 75% of the total Indian demand, will continue to drive the demand for gold.
“Gold will continue to dominate the investment space in 2011,” says Ajay Mitra, managing director, India and Middle East, World Gold Council. “Price is no longer the deterrent for the buyer. Now the dialogue is no more on the price, but on it’s being a safe heaven for investors in the time of volatility in stock market and weak recovery in global recovery.”
Some experts prefer silver to gold. “Gold has seen a rally in 2010 and it looks that at this point the price of gold may be moving towards what is more than justified,” says Veer Sardesai, a Pune-based financial planner.
“We would request investor to look at silver as it appears to be an attractive bet,” he adds.
Sardesai, however, cautioned that despite gold being an attractive investment it should not be compared to the capital markets as far as returns are concerned. “Investors should invest in precious metals to hedge themselves against volatility in other investments but should not compare the returns. As there is a tax angle in to the investments, where if you sell your gold investments after 12 months you may end up paying tax,” said Sardesai.
He suggests that the ideal investment for any high networth individual in precious metals should not be more than 5% of his total net worth.
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