Even as Prime Minister Dr Manmohan Singh has assured that the top priority of his government is saving investor’s confidence in the wake of the weak performance of the stock market, experts say it is the right time now to bet on gold when it comes to investment.
“Many investors lost heavily on the equities and it also seems to be a threat in the real estate market. Now it is high time for people to invest in gold, which is the best return on investment option,” World Gold Council Vice- President K Shivaram said.
Gold is considered a liquid asset and investing in that would be wise because its value always increases with time, he added.
India is the largest importer and consumer of gold in the world. Indian gold consumption is between 700-800 tonnes a year, which is 25 per cent of world consumption.
Interestingly, South India constitutes about 40 to 50 per cent of the country’s total consumption.
Traders predict that if the current gold demand continues, the full-year consumption of gold in India could increase more than ten per cent on year to 900 tonnes.
Traditionally, gold demand peaks in the country during November and December, considered to be the season of festivals and weddings.
Shivram said gold retailers were doing good business throughout this year. “Especially over the last two to three weeks, the retail business of gold is doing better than expected”, he said.