24 October 2005, 12:15  Gold prices rise

Call it a flashback of the early '90s. Gold prices have been found to rise 10per cent every alternate year. This was the case in 1995-96 too, which was followed by a period of five years when the growth rate was either negative or marginally positive, resulting in little movement in price of the yellow metal. Come '01-02 and in the aftermath of the 9/11 attacks, investors again found their refuge in gold and prices surged 18per cent during the year to end at Rs 4,950 per 10 gm. After that there has been a steady rise in the price; next year, the hike was at 7per cent. However, the alternate year double-digit growth factor came into play as the price rise was 14per cent in '03-04 and the absolute value crossed the Rs 6,000-mark. Year '04-05 was a dull period for investors in gold on the price front as they were steady throughout the year. But this year, there has been another surge as a weak dollar and the continuing boom across various areas have lead to a sharp rally in prices. At Rs 6,845 per 10 gm, gold prices are off their highs, but still over 10per cent higher than that at the beginning of the fiscal, falling in line with the alternate year double-digit percentage growth theory.

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