Gold still 'the safest haven': hits $1260/oz

http://www.commodityonline.com/news/Gold-still-the-safest-haven-hits-$1260oz-29243-3-1.html
By Rutam Vora, Commodity Online
Gold prices are set for yet another bull run on the back of concerns running high about European economy and investors rushing for gold under haven buying. The movement well understood when most of the investors opined that gold persist as the most safe investment instrument above all commodities and equities.

Gold prices have struck yet another high on Friday, June 18, 2010 crossing USD 1260 per ounce on Comex division of New York Mercantile Exchange (NYMEX), however in India gold prices remained range-bound between Rs.18702 and 18897 per 10 grams mainly on the back of Indian rupee firming up against US Dollar hitting near one-month high levels.

On Thursday, the partially convertible rupee had ended at Rs.46.30/31 per dollar, off an intra-day peak of Rs.46.28, its strongest since May 20. It strengthened about 0.5% from the previous close of 46.55/56.

In an interaction with CommodityOnline, Ashok Mittal, VP & Country Head, Karvy Comtrade Ltd maintained that investors should invariably invest in gold to stay unaffected in the inflationary situation and devaluation of currency. “Gold is a classic hedge against inflation and devaluing paper currency. Considering the current European debt crisis, I think gold is the only investment instrument for the investors to invest for long term,” Mittal said.

Gold has emerged to be one of the strongest investment instruments in the recent troubled times. The gold prices in the international markets have appreciated by over 12% so far during this year.

However, other commodities including silver and crude oil have also remained in the consideration for the investors. An online poll conducted by CommodityOnline.com revealed that 53% of the investors believed that silver is the second best ‘safe haven’ in the current turbulent time. CLICK HERE to keep reading.