Gold hogs limelight, leaves other commodities off sheen
During uncertain times, gold and silver are seen as good investments, and funds gravitate towards these safe heaven metals pushing up the prices.
August 11, 2011 / 08:24 IST
By Rajnish Kumar, Executive Vice - President, Fullerton Securities
During uncertain times, gold and silver are seen as good investments, and funds gravitate towards these safe heaven metals pushing up the prices. Prices of both these metals saw a dramatic change in trend with the advent of financial crisis in 2008. After a phase of consolidation and recovery, global economy is now faced with another crisis where sovereign defaults have become a distinct possibility. Even a relatively small economy like Greece defaulting can have a cascading effect which may cripple global financial system for a long time. In this macro environment both gold and silver look like logical assets to invest in. However, lets go a little deeper and look at whats happening to these metals currently.Silver had a dramatic run from end 2008 onwards. Its moved from about 9 USD to an ounce to around 50 USD. True to its reputation, its been highly volatile and has swung wildly. In 2008 it dipped by about 50% before it started rising and went up 5 times in the next 2 years or only to drop by more than 30% in 2 months from April to June 2011. Currently its moved up again and is hovering around USD 40. Silver
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
