Summary
Gold in India on record high of more than Rs.13,500 for per grams. Retail sales are badly affected. India demand for gold has been reduced. Gold is proving to be a good commodity with a safe returns.
Analysis
In India gold rates are at record high of more then Rs13,500 this year and it is expected that it may go more high due to inflation rates and condition around the world.
Due to these high prices, it is expected that retail sales will be affect a lot beacuse people cannot manage to buy in these high prices. Last year when we experince a high in the main Festival Season in which sales are good is badly affected because of these condition so this year its going to be very tough for the retailers to manage things.
This year till May2008 Gold demand in India were down by about 69% which is a record downfall so far and this is also because of these types of conditions.
On the other hand gold is proving to be a commodity in which any one can get good return in investments and it is expected that in future gold rates will be very high so investment in gold will be a smart move.
