by Administrator
10. September 2009 12:58
The equity markets may be on a roll but gold has dazzled everyone bringing stellar returns to investors. Gold funds that invest in gold mining companies and overseas equity funds that have an exposure to such companies, have outperformed every other asset category in the last one year.
AIG World Gold Fund topped the performance chart with a 51.7% return in one year (up to September 7). The other two gold funds — DSP BlackRock World Gold Fund (44.4%) and Birla Sun Life Global Precious Metal (17.7% in year-to-date) — also gave good returns. Sensex and nifty moved up 10.5% and 9.8% respectively during the period.
Gold funds beat the benchmark equity indices in the three-month and one-month periods as well. They have spurted 10.5% to 11.9% in the past week alone. Incidentally, these funds have outperformed even gold exchange traded funds (ETFs) that gained about 36% in the past year.
Gold ETFs, which invest only in the physical units of gold, get only the benefit of an upturn in the prices of the yellow metal. However, gold funds cash in on the improvement in fortunes of mining firms, which give higher returns than the yellow metal during a bull run, say industry observers. Gold funds also managed to beat ETFs in the short run when gold prices jumped in March this year.
Gold prices have spurted over the past few days on the back of renewed concerns about the sharp rally in equity markets and inflation fears due to excess liquidity in the system, say market observers. Spot prices of the yellow metal crossed the $1000-an-ounce mark on Tuesday, the highest since March 2008, according to Reuters data. "Higher gold prices and improvement in profitability of mining companies have boosted sentiments," says Lakshmi Iyer, head (Fixed Income and Products) at Kotak Mahindra Mutual Fund.
by Administrator
10. September 2009 12:57
New Delhi September 10:
Snapping a six-day long rally, gold today fell by Rs 200 to Rs 16,000 per 10 gram in the bullion market here on emergence of selling at existing higher levels amid a weak trend in the global markets.
However, marketmen said that the fall is temporary and gold will bounce back soon, once the marriage and festival season starts on September 19.
All India Sarafa (bullion) Bazaar President Sheel Chand Jain said, "Gold is still moving in a firm mode and the current fall seems to be temporary as retail customers are not purchasing the metal due to Shraadhh", an inauspicious fortnight in Hindu mythology for making fresh purchases.
by Administrator
10. September 2009 12:56
Mumbai September 9:
Equities rose 0.37% on fund buying in index-heavyweight stocks on a fourth straight day of gains, dealers said.
The benchmark 30-share Sensex index closed up 59.88 points to 16,183.55, the highest since June 2008.