I’m now going to talk about gold and silver investment market. I will be talking mostly about gold, because gold’s role is Purely monetary, while silver is produced in larger quantities and today is mostly an industrial metal. For more information visit www.capitalheight.com/bullion-premium.php

India has always been a important player in the international gold market and had a large-handed bullion spot and futures market till the the law of the Gold Control Act in 1963 which debarred the general public from trading in gold.

Since the liberalization of the Commodity market in India, Indians buy on an average of about 600 tonnes or Rs 40,000 crores worth of gold every year in the form of bars & investment.

The Indian people is in control of an estimated 7% or 13,000 tonnes (Rs 780,000 crores) of the global stock of gold. This is equal to the total savings by personal in the Indian Banking sector!

Gold is also a currency prevent — it can be display statistically that a fall in dollar against other key currencies tends to result in a increase in the dollar price of gold. At a time when there is increasingly concern over the range of the US current account deficit and hence fears of further dollar depreciation, this is a quality worth noting.

Gold is currently at crossroads. There is a growing interest in gold as an alternative to mainstream financial assets.

The dollar price movements in the start up of 2002 the price of gold was $ 280 per ounce and by the start up of 2003, the price moved up by 25 percent to $ 350 per ounce.