TNN

Mumbai, Apr 20: Even as the current economic conditions have dwindled returns from other forms of investment, Indian housewives who have been passionate gold enthusiasts and investors in the yellow metal are reaping the rewards. Gold has yielded an annual average return of 26% in the last decade, according to the World Gold Council (WGC).

In a new report, WGC has said that the annual average gold price, in Indian rupees, has grown year on year. The first quarter of 2009 has also provided an impetus. Gold has provided a positive return of 17% when compared to the average annual price of Rs 12,147 for 2008. The average price for Q1 of 2009 was Rs 14,180. The first quarter of 2009 also witnessed the price of gold peaking to an all time high of Rs 15,780 per 10 gms on February 24, 2009.

In 1999, when the price of 10gm of gold was Rs 3,850, the metal gained 216% in absolute returns as compared to 2008 prices. This pegs the annual return on investment (ROI) at 24%. Similarly, when 10gm of gold was priced at Rs 4,106 in 2001, absolute returns was 196% as compared to the 2008 price, registering an annual ROI of 28%.

In 2006, when 10gm of gold was Rs 8,791 aboslute returns was 38% as compared to 2008 prices. In 2008, the yellow metal touched Rs 12,147.

Commenting on gold's sustained upward trend for a decade, World Gold Council MD Ajay Mitra said, "The Indian housewife has turned out to be the best fund manager. Gold jewellery has been treasured, sought after and popular since the beginning of Indian history. The presence of a safe asset like gold in an investment portfolio ensures assured returns, which further adds to its appeal.''

The Gold Survey 2009 predicts that in the coming months, gold could easily re-attain the $1,000 mark, with an expectation of crossing the $1,100 barrier. If the current trend continues, Indian consumers could possibly witness a further appreciation of around 24%, adds the report.