Next Inning of Gold Rally....... will begin soon…

I am giving a buy call to add gold in your portfolio,

Remember This may be last chance to buy gold………….


Historically, gold has been a proven method of preserving value when a national currency was losing value. If your investments are valued in a depreciating currency, allocating a portion to gold assets is similar to a financial insurance policy

Gold versus Stocks
The performance of gold bullion is often compared to stocks.

They are fundamentally different asset classes:
Gold -- is a store of value
Stocks -- are a return on value (i.e. growth plus dividends). Stocks and bonds perform
Best in a stable political climate with strong property rights and little turmoil


Why gold?
One of the traditional strengths of gold is that it has always been a hedge against inflation. Gold has done a remarkably good job of beating inflation for, literally, centuries

Another argument for gold is that it helps diversify your portfolio (in simple terms, this means not putting all your financial eggs in one basket).

gold tends to move differently from other financial assets and it may hold its value even when other assets are performing poorly. Thus, an investment portfolio may earn smoother returns if some of it is invested in gold.

Perhaps the best argument for gold is that it is a good investment in times of severe crisis: like a massive war or a major breakdown of public order. In such a situation, the economy would naturally suffer along with most regular investment products like stocks and mutual funds. The value of the currency would also likely fall. In the ensuing panic, the price of gold would probably increase sharply as people flee to the age-old store of value

10-10% Allocation of Gold in Your Portfolio
A healthy portfolio includes a wide range of assets including a variety of equities with exposures to different market sectors and regions; a variety of different countries' bonds; a diversified property portfolio; a cash component and a 10-15% allocation to gold-related investments and gold bullion. The key is to determine what amount of each asset class to have. In a globalised and increasingly integrated global economy, a portfolio should be compiled based upon current global macroeconomic fundamentals.


Is it time to buy gold?
With an uncertain economic growth road ahead, Indian stock investors are nervously asking themselves: Should I stay or should I gold?

Gold has long been touted as the ultimate hedge against hard times. They don't call it the gold standard for nothing; central banks the world over stockpile the stuff to defend the value of their currencies.
Historically, gold prices rise when currency values and interest rates fall. Gold has been on a seven-year rally that has seen it rise precipitously out of back-to-back price slumps at $255 an ounce in 1999 and 2001 to early 2008 peaks of more than $900.

Gold's recent upward mobility, especially a 31-percent gain for 2007 followed by another 11-percent spike in the first month of 2008, has gold enthusiasts (known as gold bugs) and precious metals analysts alike watching in wonder at the commodity's latest high-wire act.
Some say a price correction is imminent and long overdue; others maintain that gold's next great historic run is just getting started.

The question is, should you buy gold now, even at historic highs of $900-plus an ounce?

Too high to buy?
Although it may seem counterintuitive, I must say it is definitely time to put a little bling into your portfolio.

"I'm surprised at just how strong it has been. Even though I think it could pull back, probably if you don't own some, you still should," he says. "It's high now, but what if it's going to go higher? I believe it will."

"I think gold will certainly rise into the new heights
"The last 100 years, stocks have outperformed gold perhaps 10 to 1 as an investment, so there's no disputing that the place to be is in stocks in the long run. But there are these peculiar moments in history when I think: gold. So few people own it that just the move of people into gold will cause it to really surge. I think we're in the second or third inning of the gold rally."

6 Points Favoring my Guess
• Real interest rates (interest rates minus inflation) are down globally. Result: Gold yields a better return than stocks or bonds.

• The declining dollar. Gold rises when currency falls.

• The ETF effect. With the introduction of exchange-traded funds in 2003, investors can now buy into the gold market with the click of a mouse. What's more, it's less risky than investing directly in gold mining. Two of the most popular gold ETFs are StreetTracks Gold Trust (GLD) and iShares COMEX Gold Trust (IAU). "The convenience by which individual investors can get in on the gold rally is propelling the rally itself," Laidi says.

• International rally. Gold is rallying worldwide, not just against the U.S. dollar but other currencies as well. Every time the Fed cuts interest rates to contend with the impact of the credit crisis, gold becomes more attractive.

• Increased fabrication: Emerging economies in China, India, Asia and the Middle East are boosting demand for gold jewelry.

• Political and economic uncertainty: When fears arise as they did post-Sept. 11, the enduring value of the world's oldest currency takes on a new luster.


I am giving a buy call to add gold in your portfolio, Remember This may be last chance to buy gold………….