According to the Gold Council (WGC), gold continues to remain the most secure investment even with the current economic slowdown and dwindling returns on investment from other options.
According to the WGC data, gold has provided an annual average return of 26 per cent over the past decade (between 1999 and 2008). Gold has always provided positive returns every year over the decade with the average gold price having grown every year.
Gold has provided a positive return of 17 per cent in the first quarter of 2009 when compared to the average annual price of Rs. 12,147 per 10 grams for 2008.
The average price for the first quarter of 2009 was Rs. 14,180. In the first quarter also, the gold price continued rising at an all time high of Rs. 15,780 on February 24. The average price of gold in 1999 was Rs. 3,850 and since then, it has provided an absolute return of 216 per cent with every year of the decade providing an annual return on investment (RoI) above 24 per cent (except 2006 when RoI was 19 per cent).
Speaking about golds sustained upward trend, WGC, Indian subcontinent, Managing Director Ajay Mitra stated, "Gold jewellery has been treasured, sought after and popular since the beginning of Indian history and till date, bears an extraordinary significance especially during festivals. The presence of a safe asset like gold in an investment portfolio ensures assured returns, which further adds to its appeal."
According to the WGC, "There is a strong buzz in the trade community that if the trend continues, Indian consumers could possibly witness a further appreciation of around 24 per cent assuming that the rupee dollar remains the same. It would be fair to say that this is the most favourable time to buy gold."
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