The glitz of gold is back. Investors who had pushed gold down their preferred list due to the lure of the share market, are once again putting their money in the yellow metal.

Investors who seem to be shying away from the bourses due to the market trend as well as jewellers in the city say gold is once again emerging as a predominant investment option, more so after prices started falling in the last few months.

If in July-August one gram of gold crossed the Rs 1,350 mark it dipped below Rs 1,100 by the end of August. It climbed to touch Rs 1,375 later but again it is seeing a steady fall. After a lackluster start to the year, demand rebound sharply and this could well lead to some cheer for the bullion market that saw import of gold slump by a whopping 23.4 per cent in 2007-08, according to the Bombay Bullion Association.

“Every year India imports around 1,000 tonne gold while another 400-500 tonne comes into the market through the recycling route. Today the price per 10 gm of gold is around Rs 11,795 and if price slips below Rs 10,000, which is on the cards, investors will line up outside shops,” says Fatehchand Ranka, chairman, Pune Saraf Association and owner of Ranka Jewellers. “As compared to January-February, the stock values are almost half now. I see gold a better investment option,” says Paras Shah, an investor and a local businessman.

Recommending the yellow metal for a sound investment, Bharat Parmar, who has a daily sale of gold worth Rs 1 lakh at his 30-year old jewellery shop in Raviwar Peth says, “Be it birth, wedding or any festival, the demand of gold remains dominant in India. In the villages where banking services are not available people choose to save in gold.”

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