Gold strikes all time high

India's future contract ending on Dec 5, 2009 on the MCX - Multi Commodity Exchange of India Ltd struck a record high of 16,173 rupees per 10 grams on Monday, following a rise in global gold due to a weaker dollar.

The morning session was not held on Monday owing to a holiday on account of Guru Nanak Jayanti. The previous high of 16,066 was hit on Oct. 23, 2009.

Base Metals surged

Base metals rose on Wednesday boosted by positive sentiments from the equity markets and falling inventories on the London Metal Exchange.

Prices were up locally on MCX though the gains were capped due to strengthening of rupee against the dollar. On Wednesday rupee appreciated by 44 paise against dollar to close at 50.8.

Outlook remains bullish but investors should enter at low levels for investment purpose.

On LME at 5.30 pm local time, copper was 3% up at $4,286 per tonne, aluminium was 1.3% up at $1,418 per tonne, lead was 1.9% up at $1,312 and zinc was almost 3% up at $1,380 per tonne. Locally on MCX at 5.40 pm, copper June was up by 2.5% at Rs 220 per kg, aluminium May contract was 0.7% up at Rs 72.15 per kg, Lead was 1.6% up at Rs 66.6 per kg, nickel was 2.1% up at Rs 561.7 per kg and zinc was up by 2.8% at Rs 69 per kg.

On LME, inventories have registered some fall with copper stocks fallen by 8,825 tonnes to a three-month low of 411,450 tonnes, adding to a fall of 5,000 tonnes on Tuesday. There had also been demand from China to profit from the widening price gap between the London and Shanghai markets.

Stocks markets across Asia gained on Wednesday on easing concerns about the Swine flu outbreak.

The consumer confidence for April was highest in more than three years and the decline in US house prices slowed in February. Metals were also supported by the weakness in dollar against the euro. Both the yen and dollar dropped for a second day against the euro after European economic confidence increased in April for the first time in 11 months.

Gold

Gold is one of the chemical elements. Gold's chemical symbol is Au and its atomic number is 79. Gold does not interact with other chemicals or compounds. Gold doesn't tarnish and even the strongest acids have no effect. Thus, gold lasts forever - and stays shiny the whole time!

Gold has many industrial uses, but its main historical uses have been for jewelery and money - both are a store of value. Gold has been used as a store of value for at least 5000 years. Gold is measured and prices are quoted in Troy Ounces and Grams. As an example of gold's ability to store value, 2000 years ago one ounce of gold would buy a fine man's outfit. Today one ounce of gold will still buy a good quality man's wool suit with enough left over to buy a few shirts, a tie, some underwear, socks, a pair of shoes and a belt!

Gold has the remarkable ability to store value in both deflationary and inflationary times.Gold is a store of value virtually independent of economic conditions. Unlike shares of a company or government bonds - gold will always retain value. Gold's most important use is insurance against the paper currency of the country you live in. Almost every country has had at least one major "currency crisis" over the last one hundred years. Those that had some of their wealth in gold survived. Unfortunately many people saw their saving become worthless - sometimes in a matter of days.

It is better to buy gold in small amounts regularly, every month for example, over a period of time.The percentage of your total wealth devoted to gold is a personal decision and depends on your particular situation. A conservative goal would be ten percent. In times of uncertainty the percentage should be much higher. Gold is recognized and valued everywhere in the world. It is easier to sell gold than to buy gold! Of course gold can be used in barter or trade as it has for thousands of years.