The markets seem to hold a Midas’ touch these days. Don’t get me wrong as I am not talking about the volatile stock markets, but about all those markets/financial products associated with the effervescent precious metal, Gold!
The yellow metal, which is an obsession for Indian’s, costs more than 15,000 rupees a 10 gram block. This is close to 100% more than what it was worth a year and a half back. This rise in Gold prices is reflecting in various financial instruments associated with it.
Gold backed Exchange Traded Funds (ETF) are rising sharply in the last few days (9% in 7 days). So is the case with Gold Futures, which according to ET, is on a record breaking spree.
This story of glory seems to continue for some more time as the Gold demand in India is in tact as it increased by a whopping 84% during October ~ December 2008. Also, investing in Gold would be a reliable alternative for many an investor, as the global economic crisis and it’s after effects continue to loom large over Indian markets. These would be the reasons why experts say that despite the rise, one can still invest in gold.