Gold has been considered as the symbol of wealth from Last 6000 years. In Countries like China and India where inflation is very high, People are investing in Gold because Gold is the best investment to hedge against inflation.
Gold is an investment for the long-term. We cannot predict or even guess whether the price of gold will go up in the coming years or not. But one thing is sure that Governments around the world know only one way to come out of the recession and that is by printing more Money and if they will continue print more money then the prices of Gold and other precious metals will rise certainly
Nowadays you are seeing fake increase in gold price. It is only on paper. You cannot be resale it even 60% of your investment. You must go to bank / finance for loan. Again they will get profit min. 15% interest by giving 60% of your investment worth. Petty people don't encourage to buy gold. Because it will go up even Rs 3000/gm soon. Big banners are benefited. Middle and low class people are always suffering.. Becareful..Don't go for it.. You will loose more..
Small investors can go for SIP ETF (Gold). Many companies have come out with these plans. It is a safe investment and need not worry about physical storage of gold. It can easily be sold over net at reasonable margin. Even when the gold prices go down, you will not lose much as you will be able to get more units.
