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4 reasons to buy gold

Gold, gold price, gold rates, bullion
Buy gold mantra

Y
ou can't fault gold analysts for repeating themselves. For several years now, they have told investors pretty much the same thing. They said 'buy gold' when the price was Rs 7,700 per 10 gm in January 2006. They again said 'buy gold' when it touched Rs 9,200 in 2007, and then Rs 10,700 in January 2008. Last month, the price of gold touched an all-time high of Rs 15,700 per 10 gm and these analysts were still parroting the same advice.

It seems they will be proved correct once again. Gold is the only asset class that can hold out the assurance of value at a time when most other assets are being devalued by falling markets or inflation. This is the reason most analysts are bullish about the prospects of the yellow metal and expect prices to cross Rs 18,000 per 10 gm by the end of 2009.

Babar Zaidi spoke to a range of experts and came up with four reasons why you should consider investing in gold even at these stratospheric rates.

Text: by Babar Zaidi

Images: Copyright Reuters/Getty. Any unauthorised reproduction is prohibited.

Also read: Gold ETFs glitter in gloomy markets | Gold rates





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