Festive season – The best time to invest in gold!

Diwali is considered an auspicious occasion to buy gold. With the upcoming festival and marriage season, traders are rolling up their sleeves to stock enough of the yellow metal to meet rising demand for the popular investment option. Many leading jewellers in the city have made provisions, so that the common man can buy gold and participate equally in the rally during occasions or for investment purposes.

There are two options:

One is where one can save with his jeweller and can buy his gold piece with his accumulated savings, or he can buy the gold and make payments later through credit cards of respected banks the jeweller has tied up with.Gold has been trading between Rs 19,000 and Rs 20,000 for every 10gm. From an investment perspective, it could rise 15-25% over the next couple of years, according to some experts.

Gold has the scope of touching 23,000-25,000 within the next two years. There can be a property bubble in the making and the stock market is near an all-time high, so investing in gold can be a safer bet. Gold is not only a commodity which can be traded, but is also the safest investment.

It is also a currency play, where emerging market currencies are seen appreciating against major currencies.Gold is attractive because, it is inversely co-related to the dollar. The dollar has been weakening due to issues in the US economy.


Source :Economic Times