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At a time when the stock markets have been witnessing a declining trend and real estate becoming prohibitvely costly, investments in bullions have started to show an upward trend and this is so atleast in Chennai, the Capital of Tamilnadu.
The prices of GOLD has already reached a record high and is currently quoted at Rs.1098(US$25) a gram. The primary reason attributed to this increaemse is that it is an attractive investment option.
In fact this trend is being witnessed since September last year from when the upward trend has not halted as people investing in this metal are not deterred from contiuning with their investments. Gold is sought from many angles;besides,being liquid, there is nothing that can replace it from wedding gifts including the sacred mangalsutra. However, there has been descerning changes in the preference of the invstors. Gold coins are currently the most favoured item of purchase. The percentage sales of gold coins as a percentage of toal gold sales has jumped from 5 to 15%. The chief reason for this is that it is not susceptible to any loss arising out of wastages when resold.
The other metal which is most preferred is SILVER.. This white metal is currently sold at abour Rs.25 (US$0.5) a gram.
With a number of factors operating in its favour as the downside of the U.S.Economy, an everincreasing crude prices, a volatile stock market, the quest for gold is not likely to diminish. As a result, anlaysts predict that it is likely to reach around Rs.1300 (U.S.$30) a gram by the end of this year.
If you are planning to invest, please make it sooner than later.