Against the prevailing gloomy economic backdrop, gold remains the safest way to secure savings, according to World Gold Council vice-president K. Shivaram. Even amid the equity market crash, gold has given more than 28 per cent returns in the recent period, which makes it the best investment option, he emphasizes.
With supply from the mines coming down, prices are expected to go up further, he predicts. Countries such as
Attributing the recent slump in gold rates to the move by certain countries, in the wake of the decision taken at the G-20 summit, to sell one-eighth of International Monetary Fund’s gold holdings to bolster economies, Mr. Shivaram says the slump is temporary. He points out that the value of gold has never plummeted to unexpected levels.
People in
The festival, which has gained prominence after 2001, has given a fillip to many retailers. “In 2001, we observed that a couple of retail outlets were getting more than their share of business during this period, and the reason they cited was ‘Akshaya Tritiya.’ We did detailed research into the Hindu almanac and passed on the importance of the festival across all outlets to encourage people to buy gold.”
The WGC also launched promotional initiatives to coincide with the festival.
Charting the pattern of the growth of the business, he said major gold purchases were initially only for weddings. But soon festivals began providing people a reason to plan their investments by buying the yellow metal.
With the economic slowdown evident across all sectors, the sale of gold too has witnessed a slight fall.
He suggested that gold shopping festivals, as they are held in States such as Kerala and
source: The Hindu
