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GOLD APR
WEEKLY TREND-STRONG
R1 16590, R2 16729, R3 16942
PIVOT 16377
MID 16339
S1 16238, S2 16025, S3 15886
BELOW 16060 WEAK

In today’s troubled economic scenario, we prefer the kind of investments that will protect our wealth rather than create wealth for us. Gold is one such investment. It is a bedrock of investments that can weather any storm. Gold as an asset has long-term intrinsic value, which helps shield our investment from inflation, currency debasement and equity market declines. At the same time, it saves the country’s purchasing power from nosediving. In fact, it offers the best protection against volatile markets. The reason: gold prices are maintained or increased irrespective of the country’s economy moves in an upward or a downward direction. From the last 20-30 years, gold prices have been on a steady and continuous rise. The precious metal has given returns of around 9.45 per cent as the prices went up from Rs 1,000 per 10 gram in 1979 to its present value of Rs 16,500 per 10 gram.

Why should we invest in gold?
Gold is a proven way to preserve wealth, especially when the local currency is losing value. It is also valuable for things beyond investments as demonstrated by its ever-increasing demand. The demand for the yellow metal is so high that its current consumption has exceeded its production. The production of gold is controlled by a few companies; whenever the prices of gold fall below its production costs, these companies stop their operations. This mechanism creates a stable floor price for gold. Thus when market plunges, like stock prices gold prices do not get affected, and cushion our investment portfolio against downturns.

Ways to invest in gold
We Indians have been the largest buyers of natural gold, but it’s not long ago that we recognised its value as an asset and start adding it to our investment portfolio. Investments in gold are made through gold coins, gold jewellery, gold bullion (biscuits or bars trading through demat account), gold futures, gold ETFs and the recently-acknowledged gold mining companies. Gold jewellery, no doubt, carries high emotions and intrinsic value in real sense, however it is not the smartest way to invest in gold, mainly on account of the uncertainty of quality of gold used and high additional making costs. In terms of return too, you find variations in the forms of gold investment. You can make 100 per cent in gold stocks, 50 per cent in gold coins or bars, or even 500 per cent in gold futures.

By Puru Saxena
Let’s face it, the government-bond market in the West is a gigantic Ponzi scheme. Most governments in the ‘developed’ world are drowning in debt, they are running mind-boggling budget deficits and printing money like there is no tomorrow. Furthermore, under the guise of quantitative easing, their central banks are buying their own newly issued debt!

U.S. Economy
The March U.S. dollar index closed down .31 at 80.41 while Europe struggles to agree on a rescue plan for Greece. The March 2011 eurodollars were up .07 at 98.695, supported by a mild flight to safety.

Gold Prices could rise beyond the $1,500 per ounce this year, according to one industry expert.

Jeffrey Nicholls, specialist precious metals analyst and managing director of American Precious Metals Advisors, believes that the long-term components of a sustained rise in global Gold Prices are in place.

By Jon Nadler
Yesterday’s Greek-flavored gold rally turned into today’s Chinese-tinged decline as the Beijing government flat-out demanded that banks freeze more money from being lent. The surprise but unsurprising move to raise reserve ratios by half a percent comes on the heels of a similar move on January 12 and will take effect on the 25th of the month.