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.