The Quest For Gold


The Yellow metal soberly,

Has turned the stones briskly,

By  rising gradually ,

To shoot up suddenly,

In a  buzzing move  graphically,

To an unassuming level sporadically.

Today it races ahead,

Tomorrow it will  behead,

But the thirst will spearhead ,

A  demanding   price spread ,

Soliciting a tumultuous  thread,

That of  an imposing  surge dread

Gold is into a spectacular momentum. The rise in prices ,in the past three years, is unbelievable.

In 2007 the price of gold was between $639-$833. The year 2008 saw a volatile trend-$826-$908-$1003-$727-$869.Gold crossed the $1000 mark on 14/March/2008.
There was a slight upturn in the price of gold in 2009. The price change was significant. $874 -$956-$1059-$1137-$1212-$1087.
2010 was the year of gold. The up swing was very effectively felt. The price ranged from$1121-$1093-$1245-$1388-$1415-$1405 .2011 saw a steady rise.
There was a  slight dip in January /28/2011-$1311.On February/1/2011 it crossed 1400 once again. Then on, it never turned back. It is now trading at $1476.

Gold , now, behaves like a social currency than a commodity.

Gold is a safe haven, an edge against any economic, political social or fiat currency crises.The stock market collapse, the currency failure ,burgeoning national debt, war, unrest make gold a worthy investment  .It is also subject to speculation by futures contracts and derivatives.
Changes in sentiment than changes in annual production effect gold price..About 2000 tonnes go into jewelry or industrial , dental production and 500 tonnes go to retail investors and gold traded funds.
Currencies are under severe stress. We print  paper money to pump money  into the economy, making  it less valuable.
India is the largest consumer of gold ,consuming 27% of the world  production followed by china and U.S
The prise of gold is also affected by artificial price suppression arising from fractional reserve banking and naked short selling.

The traditional way of investing in gold is buying gold bars. Large gold bars carry an increased risk of forgery.Gold coins are common way of  owning gold. Exchange traded funds and gold certificates are less known methods of investing in gold.
Gold has value but no return. Stocks have value and growth. The latter is a preferred instrument ,when there is political stability. Investment in gold come to the mind  during recession and war.
Stocks against gold , a study,  reveals that holding  a prime company’s share valued at $1450 yields a better revenue than owning  an ounce of gold. Stocks earn while we own. Gold earns when we sell.Some valuable stocks have doubled , while gold rise is between 40%-50%.
Gold is the most speculative commodity. In 1980, its price was $1000 , a few months later it tumbled to $850 and finally rested on $300.
The common belief is that gold has a “real “value.

Real is a relative word. What is real? It is that what we eat.It is that where we live.It is that which we share. It is that how well we sustain.
The time well spent with children, with friends, imparting valuable education to our offsprings  and making the world into a better living place are worthy investments which will reap more value than gold.
The value of pure gold  diminishes , but the value of good life enhances.

1 thought on “The Quest For Gold

  1. slpmartin

    Since there is so little gold in the world it continues to rise in price…here in the States despicable businessmen try to convince people to sell “their old unwanted gold”…what a scheme!

    Reply

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