Gold price may hitting

Gold jumped by as much as Rs 200 from yesterday’s close to reach an all-time high of Rs Rs 15,900 per 10 grams in the Indian capital, New Delhi. A similar spurt was recorded in global markets, which jumped to a 6-month high of almost $1,000 an ounce in the domestic markets.

The foremost reason most analysts have given to explain the phenomenon is that traders are stocking up the commodity before the start of the inauspicious ‘Shraad’ fortnight period, during which no such trades are supposed to be carried out.
However, what is adding to the price progress in the yellow metal is that investors are being chary of the volatile stock markets (they have also been range-bound for more than a month now) and are safeguarding their money by investing in bullion.
The ‘Shraad’ period is quickly followed by the auspicious period that is marked by festivals like Diwali and the start of the marriage season, which usually drives gold retail sales to the year’s high.

The other precious metal to show a significant surge was silver. It jumped by as much as Rs 700 to reach the Rs 25,300 marks. Platinum, Palladium and Rhodium are next in line.

The advantages of gold investment are that it is an effective diversifier, highly liquid and portable.

Gold investment, like investment in any other precious metal, has some advantages in compare with other forms of investing your capital and are worth considering before you make your final decision. The greatest advantage of gold investment is definitely the safety. Gold has been highly valued precious metal since the prehistoric times and will be highly valued also in the future. For that reason you do not have to worry so much over its daily prices on the global market and future development because gold investment brings minimal risks (off course if you are not speculating).

The strength of gold as a diversifier is due primarily to its negative correlation with other asset types. The market and economic forces that determine the price of gold are different from those that affect most financial assets, and are very often in direct opposition to them. Gold is easily convertible to cash. Gold can be readily bought and sold 24 hours a day, and trading spreads are narrow…in fact, bid/offer spreads are similar to the spreads on stocks.

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