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Gold glows record high at Rs 14,600

New Delhi, Sat, 31 Jan 2009 Noor En Ahmed

Gold, the yellow metal, has started to glow brighter due to its stronger guarantee of providing better returns in the ongoing global financial turmoil. The pure gold on Friday breached its all time high in the domestic market at Rs.14,360 – reached on October 10 last year – to Rs.14,470 per 10 gram.

Today, rolling with the same pace, the pure gold in bullion market has crossed the mark of Rs.14,600 per 10 gram of pure gold, as Multi Commodity Exchange (MCX) – one of the largest commodity exchange of India reported.

On MCX, the spot price of Gold High Networth Individual (HNI) in Ahmedabad has been bade at Rs.14,632 per 10 gram at 12:30 p.m. while the future contract of 10 gram gold HNI expiring on April 27, 2009 is bidding at 3% high on Rs.13,374.

In the World Gold Council, London, a nonprofit association of the world's leading gold producers, the pure gold spot price registered at $928.30 per ounce at 7:15 GMT on Saturday translating into Rs.14,743 per 10 grams.

Viewing the higher prices of gold, the physical buyers are far away from the market and waiting for a drop in the prices to below Rs.12,500 per 10 gram though chances are seeming less on the back of a weaker local currency, bullion market experts believe.

However, on the other hand, a long queue can be seen in front of the jewellery shops by those who owned gold for investment purpose. The customers are expecting to get fatter profits by selling their old ornaments and gold coins.

On the contrary, viewing the soaring prices of gold, the customers are now moving towards Platinum – the 10 times rare metal than gold – as the price difference has become narrower as against the previous tradition when platinum was measured extremely expensive and the price difference of both the precious metals were broader.

For the investor, gold is still a better choice, as it is always considered as the safest means of investment and the investors can purchase the gold contracts or physical gold after marginal correction in the gold price, the market experts added.