With prices running to three-month high and nearing $1,300 an ounce, a
fresh guessing game is on as to whether this is right time to invest in
gold or not?
Indians in general and south Indians in particular are known for their love towards the precious yellow metal, which is being used as an inevitable object in weddings and other functions, in the form of jewellery.
The reason behind the prominence of gold among the hearts of the people is that it is being viewed as a solid investment option for centuries. Also at times of financial crunch, gold jewels can be pledged.
“All these things, apart from the beauty of gold ornaments, have made people go crazy for gold. For those in Tamil Nadu, Chennai is the ultimate destination for gold purchase, and hence, gold rate in Chennai always hogged attention,” says M B Kumar, an analyst.
When asked whether this is right time to invest in gold, he said, “Certainly yes. Many jewelers have announced gold investment schemes, making gold rate in Chennai very attractive. This is right time for investors to make right investments in gold.”
He however added: “But people should exercise enough caution before investing in gold schemes. They should check the credibility of the company providing the offer, they should read the terms and conditions well and also, they should check with their friends and relatives, and if possible, with investment advisors.”
“Just because jewelers have made gold rate in Chennai attractive, people should not rush and invest in gold. They should be wise enough,” he said, recalling that many companies cheated investors in the late 1990s.
“During that time, people made a mad rush to jewellers and invested their hard earned money. They were lured by tall promises made by jewellers who offered attractive returns to the investments. But things did not last for long and people were cheated soon,” the analyst further said.
Another insider who had a chat with us said that India and China are two leading countries in the world when it comes to consumption of gold. “However, China is overtaking India of late, as the trade in India is under intense pressure due to various restrictions leveled by the government on gold imports.”
Citing facts and figures, he said that the recent restrictions by the government of India and Reserve Bank of India have brought down gold imports drastically, there by putting the industry under intense pressure.
“Jewellers are struggling to get gold. Moreover, these restricts by the government has fuelled smugglings. Latest figures show smuggling of gold has increased in India,” he added. He said that if the government removes the curbs, India can beat China in the trade.
It is to be noted that latest statistics released by China Gold Association revealed that the dragon country’s gold consumption for the first time exceeded 1,000 tons to reach 1,176.4 tons in 2013, a year on year increase of 41.4 percent. The gold consumption in 2012 was 832.2 tons, a year on year increase of 9.4 percent.
“While China’s gold consumption is increasing year after year, it is sad that the gold imports in India have come down drastically. This is going to have a big negative impact in the business in 2014,” he said.
However, he continued to maintain that gold is still a good investment option for people. “There is nothing like gold to invest. It is safe, reliable and it can be converted into cash anytime,” he said, reassuring gold lovers that all hopes are not lost.
For more details;
Contact,
Chennai.GoldrateLive.Com is continually growing, and to ensure that we are always giving you exactly what you want we would love to hear any feedback you may have. It may be about our website, our service, or any new features you would like to see us include
+91 99623 60756
enquiry@goldratelive.com
http://www.chennai.goldratelive.com/
Indians in general and south Indians in particular are known for their love towards the precious yellow metal, which is being used as an inevitable object in weddings and other functions, in the form of jewellery.
The reason behind the prominence of gold among the hearts of the people is that it is being viewed as a solid investment option for centuries. Also at times of financial crunch, gold jewels can be pledged.
“All these things, apart from the beauty of gold ornaments, have made people go crazy for gold. For those in Tamil Nadu, Chennai is the ultimate destination for gold purchase, and hence, gold rate in Chennai always hogged attention,” says M B Kumar, an analyst.
When asked whether this is right time to invest in gold, he said, “Certainly yes. Many jewelers have announced gold investment schemes, making gold rate in Chennai very attractive. This is right time for investors to make right investments in gold.”
He however added: “But people should exercise enough caution before investing in gold schemes. They should check the credibility of the company providing the offer, they should read the terms and conditions well and also, they should check with their friends and relatives, and if possible, with investment advisors.”
“Just because jewelers have made gold rate in Chennai attractive, people should not rush and invest in gold. They should be wise enough,” he said, recalling that many companies cheated investors in the late 1990s.
“During that time, people made a mad rush to jewellers and invested their hard earned money. They were lured by tall promises made by jewellers who offered attractive returns to the investments. But things did not last for long and people were cheated soon,” the analyst further said.
Another insider who had a chat with us said that India and China are two leading countries in the world when it comes to consumption of gold. “However, China is overtaking India of late, as the trade in India is under intense pressure due to various restrictions leveled by the government on gold imports.”
Citing facts and figures, he said that the recent restrictions by the government of India and Reserve Bank of India have brought down gold imports drastically, there by putting the industry under intense pressure.
“Jewellers are struggling to get gold. Moreover, these restricts by the government has fuelled smugglings. Latest figures show smuggling of gold has increased in India,” he added. He said that if the government removes the curbs, India can beat China in the trade.
It is to be noted that latest statistics released by China Gold Association revealed that the dragon country’s gold consumption for the first time exceeded 1,000 tons to reach 1,176.4 tons in 2013, a year on year increase of 41.4 percent. The gold consumption in 2012 was 832.2 tons, a year on year increase of 9.4 percent.
“While China’s gold consumption is increasing year after year, it is sad that the gold imports in India have come down drastically. This is going to have a big negative impact in the business in 2014,” he said.
However, he continued to maintain that gold is still a good investment option for people. “There is nothing like gold to invest. It is safe, reliable and it can be converted into cash anytime,” he said, reassuring gold lovers that all hopes are not lost.
For more details;
Contact,
Chennai.GoldrateLive.Com is continually growing, and to ensure that we are always giving you exactly what you want we would love to hear any feedback you may have. It may be about our website, our service, or any new features you would like to see us include
+91 99623 60756
enquiry@goldratelive.com
http://www.chennai.goldratelive.com/
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