Thursday, September 11, 2008

Should I invest in gold funds, why invest in gold?

If you are thinking why I should invest in gold, this piece is for you. India i the biggest market of gold in the world. Huge economies like Russia and China are also following suit. The main thrust for gold prices is the huge disparity between demand and supply. In recent demand has been, according to the experts, 15 percent more than the supply. This is one reason why prices of gold are expected to rise. Also gold prices are linked to the dollar strength. With the value of dollar coming down or remaining stagnant, the demand and price of gold is expected to rise. Central banks of many countries are paying more attention to their gold reserves. The price of gold is expected to escalate because the cost of production is also moving up. Due to strife, activities in many mines of Africa have stopped which has resulted in decreasing supply and increasing of corresponding demand. Though you may do your own independent research or consult a financial expert in this regard, there are many tangible factors and data that prove gold is in demand.

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