... Back in year 2000/2001, few were recommending gold, when it was trading at about U$ 260 per ounce. Today however, after a 70 per cent rise in the price of gold, the interest in this commodity has only increased. Our advice to you, be realistic and invest in gold only to the extent it suits your risk/return profile. The comparative table (Table 1) puts in perspective the returns generated by different asset classes viz. equity, debt and gold over different periods of time. It is important to note that during these different time periods, the stock and debt markets have been through at least one significant instance of erosion in value. Gold however, has pretty much had a steady run. Despite this, gold, purely from an investment perspective, does not compare well with the other avenues. Then, why the persistent interest in gold? There are a few reasons for the same: * The ...

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