Wednesday, 10 August 2011

Gold investment value still upward trend

Gold is again proved that it is a precious metal. The yellow metal never turn backs and never compromises its value. The Stock market is again downward trend. May be due to US rating problem or any other reason, nobody can predict that the situation will improve or not in near future. But Gold is not like that. The pure gold has its value ever.

Due to this situation the nations changed its policy and replace the reserve currency with gold. This also increased the demand of gold and the price also increased simultaneously. Investors also shifted to gold from other equity related products. Now gold is in its peak value. The small investors are not daring to invest uncertain stock market.

Investment experts say that the value of gold will show increasing trend till the end of this year. Real estate is in its peak and there is no evidence that the value become high again. This may be a slow down. The adverse effect of financial market also will affect real estate, bonds etc. So you can invest in gold for a short while. But be vigilant against investing all your efforts in gold. We cannot predict that the value of gold will shows high for ever. There may be a correction.

Investment in gold will not give you any bonus, interest or dividend. Just gives the possible appreciation only. One of my friends told that when you had a monthly salary of Rs. 3000 you could buy 10 gram gold with one month salary. Now you are getting a salary of Rs. 40000 you can buy 15 gram gold. So comparatively the value of gold did not increase as per the rate of inflation. Even if he did not consider the seniority factor he is almost correct.

So our opinion is that you should invest only a part of your investment, say 10% in gold and book profit whenever you get a desired profit.

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