I was never in favor of yellow/white metals. Long past, I lost a chain and a ring to a crook during my summer internship days and that was the end of my story towards owning gold. Nonetheless, it surfaced two months back, owing to the occasion of my marriage and voila, I own a few sovereigns now!
Now coming to the point, I bought the gold at a price of Rs. 801 per gram on the 1st of July 2007 and today on the 6th of September 2007; the price of gold have gone up to Rs. 905 per gram. That translates to an out of the blue return of about 13 percent (approximate yearly return of 78 percent) in just two months! It may not be as lucrative a return as you get while investing in stock markets, but it’s not that small either.
I know that I shouldn’t go by the numbers as gold prices won’t increase like this round the year. There are times when the price falls as well. But the point is bullion also makes a great investment, provided you track the market well and put your money at the right time. While I don’t think I have done the same, like tracking and timing the market, this was an eye-opener and now I am going to track the bullion market too.