While the current economic conditions may have dwindled returns from other forms of investment, Indian housewives who have been passionate gold enthusiasts and investors are still reaping high returns from their investments in the form of gold jewellery and coins.
As per the data released by World Gold Council (WGC), gold has provided an annual average return of 26% over the past decade (between 1999 and 2008). With the annual average gold price grown year-on-year, gold has always provided positive returns every year for the last 10 years.
As of the first quarter of 2009, gold has provided a positive return of 17% when compared to the average annual price of Rs 12,147 for 2008. The average price for Q1 of 2009 was Rs 14,180. The first quarter of 2009 also witnessed the gold price at an all time high of Rs 15,780 per 10 gm on February 24, 2009, according to latest survey report released by World Gold Council (WGC).
“Gold jewellery has been treasured, sought after and popular since the beginning of Indian history and till date bears an extraordinary significance especially during festivals. The presence of a safe asset like gold in an investment portfolio ensures assured returns, which further add to its appeal. We are confident that on Akshaya Tritiya consumers will make significant gold purchases as gold is an irreplaceable part of Indian culture and a unique monetary asset,” Ajay Mitra, MD, World Gold Council (WGC), Indian Subcontinent, said.
Indians believe that gold is a symbol of good fortune and prosperity. With Akshaya Tritiya round the corner, this positive trend further encourages housewives to make a gold purchase at this opportune time in the year, report said.
Gold Survey 2009, launched recently by GFMS predicts that in the coming months, gold could easily re-attain the $1,000 mark, with an added expectation of crossing the $1,100 barrier. WGC, a commercially-driven marketing organisation, is funded by the world's leading gold mining companies.