STOCK BUZZ

Buy Gold with a long term outlook, especially at the current price. See below for recent articles. Gold imports by India, the world's largest consumer of the metal, are unlikely to top 1,000 tonnes this year but are on course to hit a record above 800 tonnes, trade officials said. Rising incomes from a booming Indian economy and a stronger rupee have helped demand for gold, traditionally used in jewellery but now also favoured as an investment. But a spurt in prices has made buyers wary, while other investment opportunities such as a bullish stock market lure money away. Imports by the end of the year may be "closer to 800-850 tonnes", Rajan Venkatesh, director - India bullion at Bank of Nova Scotia, said. The first half of the year has been very good, but sales are not as buoyant now.Imports in 2006 were 715 tonnes.While purchases between January and August this year were 664 tonnes, up 87 percent from a year earlier, it said. A firmer Indian rupee, which has climbed ab...

In recent months, the interest in gold has grown palpably among investors across the world. Among the key reasons contributing to this sudden interest in gold is the fact that other asset classes, like stocks and bonds, seem very risky today. So, in a sense, there is a flight to safety as one would expect. And the fact that gold, relative to such assets, has been a very poor performer over three decades has only made it appear more attractive. Data source: World Gold Council The graph shows how gold has returned, in different currencies, since the start of 2007. It is apparent from this self-explanatory graph that if you were invested in gold, in US$ terms, your investment would have been by far the best performer. But if you were invested in Indian Rupees (which you are), you did not fare all that well. But if gold is a standard commodity, why is the return different in terms of different currencies? The answer lies in the exchange rate. In recent months, the India Rupee has apprecia...