Gold retains glitter

AlfredSokol said: "Gold prices up [url=http://www.livemint.com/2007/08/08021753/Gold-retains-glitter-as-stock.html]2% since July[/url] [quote] New Delhi: Having burnt their fingers in the recent stock market fall, which wiped out more than Rs2 trillion of investors’ wealth, people have started parking funds in precious metals. Gold prices have appreciated by about 2% since 27 July, while in the same period the stock market’s benchmark index, Sensex, has lost more than 5%. In the domestic market, gold prices are currently being quoted at more than Rs8,800 per 10gm, after dropping to nearly Rs8,720 level on 27 July. Analysts expect it to cross the Rs9,000 level this week and the Rs10,000 mark by 2007-end. The BSE Sensex had plunged 542 points on 27 July and another 615 points on 1 August due to scare of foreign institutions pulling off their money in the wake of US subprime lending crisis. On Tuesday, the index closed at 14,932.77 points. “The next trigger will be provided after the US Federal Reserve’s meeting on interest rate later tonight,” an analyst at commodity brokerage house Karvy Comtrade said.[/quote] As stock market returns dry up, people flock to gold. Or at least that's the basic premise."

lil dickie said: "Depends on the sophistication level of the investor."