The world can pretty much count
on India to buy GOLD even in the midst of a severe economic crisis even at the
cost of everything else! Such is the obsession for gold amongst Indians that
once again the country has emerged as the largest consumer of gold in the third
quarter for the fiscal year of 2008.This at a time when other countries are
saving like squirrels in winter. Not only that India has also registered a near
seventy percent increase in it’s demand for gold this time of year as compared
to last year.
The Diwali season is upon us and
it’s a critical time for many companies that rely on these months to give their
sales that extra boost .For most firms this is the time when almost half their
inventories are either sold or exported worldwide. It is the third quarter of
the fiscal year that decides the fate of many companies which depend on the
festival season commencing from Diwali. Considering the bleak forecast that was
predicted for these companies following the lack of demand due to the economic crisis,
their sales have surprisingly rebounded but only just.
Submitted by Financeman on July 10, 2008 - 8:38am.
My friend had invested in DSP Merryll Lynch's Gold Fund about three months back. About the same time when I had invested in a diversified Equity fund( with over 70 % allocation in Equity and equity oriented schemes and rest in debt schemes) I have noticed that even when the sensex tanked below 13000, his investments are going up. In this market, when Sensex is crashing day by day -Is it wise to invest in Gold Funds instead of Equity ( Diversified or Sectoral) Ones? If this is the case then which Gold Fund o invest in? Is the Reliance one better than the DSP one?
Gold has been hitting record highs and at this moment of time is trading at around $874 per ounce. Point to be noted here is that gold has started its long-term bull run and has managed to beat long-term inflation.
In terms of statistic, gold prices have increased to more than $800 per ounce in the first week of this month since January 1980 on the back of consistent demand. If experts are to be believed, gold has gained around 20 per cent since mid August. This was the time when US subprime crisis sent shivers down the spine of the global financial market.
The Indians' faith in God and gold dates back to the Vedic times; they worshipped both. According to the World Gold Council Report, India stands today as the world's largest single market for gold consumption.
For a much more serious and detailed view on the matter we like the explanation found at Hare Rama Hare Krishna site
The world can pretty much count
on India to buy GOLD even in the midst of a severe economic crisis even at the
cost of everything else! Such is the obsession for gold amongst Indians that
once again the country has emerged as the largest consumer of gold in the third
quarter for the fiscal year of 2008.This at a time when other countries are
saving like squirrels in winter. Not only that India has also registered a near
seventy percent increase in it’s demand for gold this time of year as compared
to last year. 
The Diwali season is upon us and
it’s a critical time for many companies that rely on these months to give their
sales that extra boost .For most firms this is the time when almost half their
inventories are either sold or exported worldwide. It is the third quarter of
the fiscal year that decides the fate of many companies which depend on the
festival season commencing from Diwali. Considering the bleak forecast that was
predicted for these companies following the lack of demand due to the economic crisis,
their sales have surprisingly rebounded but only just. 
