Gold sales are on the rise and seem to be gaining popularity this festive season. World Gold Council (WGC) predicts a substantial increase in the sales of gold this year, confirming the growing demand for the precious metal.
On gold sales, Shivram Kumar, vice-president, World Gold Council, said, ?Sales of gold are expected to increase by 10-15% this year over the previous year. With international crude prices scaling up to such a high, there is a possibility of inflationary situation developing all around. In such a scenario, gold could be the best bet as a hedge against inflation. What better time to buy gold jewellery than now during this festive season of dhanteras and diwali.?
In addition to the ascent of gold jewellery, gold coins and medallions are also becoming a preferred source of investment. As the Indian investor explores new avenues of investment, his contributions to the ?gold for investment? category facilitate a healthy growth rate, he said.
On gold price outlook, Si Kannan, associate vice-president (research) of Kotak Commodity Services, said, ?Quite conveniently crossing the psychological mark of $800 an ounce in the world market and the technical resistance at $806, gold closing on Friday has further vindicated our stance. We now see a potential of gold prices moving up to $900 by next year, preferably by March 2008.?
In the anatomy of gold bull market, there are three stages spanning over 12 years.