Gold price rockets sky high
Gold is losing its lustre slowly in the domestic market among the common people as it has crossed their purchasing capacity.
The precious yellow metal hit a record price of Rs 50,499.28 (11.664 gram) for a tola today increasing by Rs 1,405 from yesterday’s Rs 49,093 for a tola.
For those who are planning for marriage this season — normally during November-January — will have to increase their budget as one of the most essential commodity for ornaments in the marriage according to the tradition, has seen a steep rise in the last some months.
The precious metal hit $1,815.50 in early trade as Asian markets tumbled after Wednesday’s massive sell-off in the US and Europe, which was caused by fresh concerns over the global economy.
Rumours of a downgrade in eurozone giant France — due to problems at a number of French banks — reignited concerns that the European debt crisis has spread from the peripheral states.
Gold is traditionally used as jewellery universally mainly due to its beauty, grandeur, colour and luster but the rising price distracted the customers from buying. “There is hardly any sales of the gold, despite the coming Teej — a festivals of women, who buy new jewelleries,” said Nepal Gold and Silver Dealers Association president Tej Ratna Shakya. But, the country has witnessed a huge import of 700 kg of gold worth Rs 2.46 billion in Jestha (mid-May-Mid-June) from around 100 kg some months ago.
Since its discovery in 325 BC, gold — because of its rarity and difficulty to mine — has been considered also as a currency and an investment, used to create political power and settle trades.
Lately it has become the best investment option worldwide.
During the first quarter of 2010, investment demand grew by 26 per cent to 310.5 tonnes from 245.6 tonnes in the first quarter. In value terms, investment demand was $13.8 billion, according to World Gold Council.
The main growth came from bar and coin demand which increased by 52 per cent year-on-year, to 366.4 tonnes. In value terms, it represented a near-doubling of demand to $16.3 billion from $8.6 billion in the first quarter in 2010.
The customers are buying not jewelleries but gold bar as an investment, Shakya said, justifying the increased demand in the domestic market.
Gold has been a valuable and highly sought-after precious metal for coinage, jewellery, and other arts since long before the beginning of recorded history.
Gold standards have been the most common basis for monetary policies throughout human history, being widely supplanted by fiat currency only in the late 20th century.
A total of 166,600 tonnes of gold have been mined in human history till date. The world consumption of new gold produced is about 60 per cent in jewellery, and 40 per cent in investments.
Besides its widespread monetary and symbolic functions, gold has many practical uses in dentistry, electronics, and other fields. Its high malleability, ductility, resistance to corrosion and most other chemical reactions, and conductivity of electricity lead to many uses of gold, including electric wiring, coloured glass production and even gold leaf eating. Gold is a chemical element with the symbol Au (from Latin: aurum meaning gold) and an atomic number of 79. The atomic number of gold, which means there are 79 protons in the nucleus of every atom of gold.
Held securely in national vaults as a reserve asset, gold has an irrefutable logic, released from the tombs of pharaohs and emperors alike, it has an undeniable magic. And the magic of gold seems to continue for decades to come.
• Gold melts at 1,064 degrees centigrade and only boils at 2808 degrees centigrade.
• Some 166,600 tonnes of gold has been mined since beginning of civilisation and over 90 per cent of the world’s gold has been mined since the California Gold Rush.
• Some 60 per cent of the gold mined has become jewellery.
• 31.103 gram is equal to one troy ounce the popular measurement of gold.
• US Federal Reserve holds 6,200 tonnes of gold.
• The largest gold coin ever minted, a 2007 Canadian $1,000,000 Maple Leaf is 53cm in diameter.
• The gold has reached a new high in 2010 In a total of 22 times.