Customers weary as gold touches record high

February 20th, 2009 - 12:51 pm ICT by ANI  

Chennai, Feb 20 (ANI): Gold continued its record-breaking spree in India as investors poured money into the safe haven asset due to the deepening global recession, analysts said.
“Everything has dropped down. There is a total global meltdown. So, the only good for the investor is to invest the money in gold and anytime they can always get back the money without any loss which make some profit. So that is why gold is the real investment. Now, the price rise is mainly because of the physical buying of gold by the investors,” said Syed Ahamed, a chief adviser, Tamil Nadu Jewellers Federation.
But gold buyers stayed on the sidelines, as prices at record highs continued to hurt demand.
Customers said social obligations forced them to buy gold or otherwise they would have postponed buying.
“The price level was comparable with last week. This week it has increased by 100 rupees. We are middle class family and if there is any function we have to buy gold. Buying gold is a kind of investment for future. Even if the price goes up, a middle class family has to buy gold,” said Puja, a customer.
Gold futures on the continuous charts was 0.70 percent higher at 15,670 rupees per 10 grams, after hitting a record of 15,706 rupees earlier in the session.
Bank gold was 200 rupees dearer than local gold, signifying profit-taking by traders, dealers said. Traders said the flow of scrap gold continues as consumers cash in on the record-high prices. (ANI)

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