GOLD GLITTERS!
The gold prices is increasing from few week from continuously indicates that gold is used as hedging instrument in all uncertain times. More people turn to invest in gold because of its enduring value. When there expected return on bonds, equities, and other market instruments decreases, the price of gold increases in the market. The following is the trend of gold price in last 45 years. (Source: Bloomberg) Interesting fact to notice is the price of gold was not volatile much from 1975 to 2005 and has increased suddenly from 2005 till date. The only exception is of 1978 was because of increase in crude oil price and inflation, which again settled to the then market equilibrium price in 1980. The price started increasing from 2005 to 2011 due to increase in the commodity prices all over the world, with slight decrease in 2008 due to financial crisis, which is popularly known as sub prime crisis. The commodity prices at that time increased due to the inelastic demand and supp...