In a world where everyone is going crazy over gold, at least one man wants us to buy silver instead. World gold inventories, including jewellery, have increased from 1 billion ounces (one ounce equals 28.35 grams) in 1940 to 5 billion ounces today. In contrast, silver inventories have declined from 10 billion ounces in 1940 to 1 billion ounces, Theodore Butler, silver analyst, Butler Research told Vivek Kaul of DNA Money. Excerpts from an email interview:

How did you get into tracking silver?

Even after revival in equity markets, correction in gold prices will be gradual and limited, say experts

Amid global recession, gold has emerged as the only investment avenue, which not only offers safety, but also gives healthy returns. However, following unprecedented surge in the gold prices, certain sections of the investors have become sceptic about future movement in the yellow metal, as they have bitter experience during the boom time in the commodity markets in 2008, particularly in case of crude oil. Their concern seem to be valid, as experts don't rule out correction in gold, but at the same time they also concede that unlike other commodities, correction in gold will be limited and gradual.

Size of jewellery market in India is expected to double in next six years. According to a recent assessment by Associated Chambers of Commerce & Industry of India (Assocham), current size of the market is estimated to be around $15 billion, which is likely to touch $30 billion by 2015 driven by demand for gold and diamond jewellery. Worldwide market for gems and jewellery industry is believed to be more than $150 billion.

With gold prices pushing northward aggressively, the gold accumulation schemes offered by jewellers have started finding takers again.
Gold prices are currently ruling at Rs 15,335 for 10 grams, after having reached an all-time high of Rs 15,745 on February 21, an increase of nearly Rs 3,000 in just 45 days.

Chennai, Feb 20: Go

India witnessed 84 per cent increase in gold demand for the fourth quarter of 2008, proving it as a safest heaven for investment after the plunge of share market and low interest rate regime following global financial crisis.

Gold demand surged to 147.2 tonnes in the fourth quarter in 2008 from 80 tonnes a year earlier, as per data collected by Gold Fields Mineral Services, an independent consultancy, for the World Gold Council (WGC).