Commodity Online MMTC, India’s largest public sector company and biggest importer of gold, says the yellow metal has a bright future as investors would use gold as a hedging tool.
MMTC chairman and managing director Sanjiv Batra said that long term gold prices have to be up. “Gold has a big, bright future. I would advise investors to stay put in gold for sound futures plans and investments,” he said.
In the midst of a meltdown in commodity prices including crude oil, Batra said, gold is the best bet for hedging.
While gold production is more or less static, demand for the yellow metal is increasing as people prefer to hedge in gold. Batra said that gold demand is increasing in India and across the world thanks to volatility in currency markets.
According to the World Gold Council statistics, dollar demand for gold soared to an all-time quarterly record of $32 billion in the third quarter of 2008 as investors around the world sought a cushion against the global financial meltdown and jewelry buyers returned to the market in droves thanks to low gold prices.
