Behind the new gold rush

The Hindu.com reports that Gold is losing its respect as the default and fail-safe asset class and becoming a speculative instrument.

The editorial is quoted as saying:

Emerging economies such as China and India are accumulating gold in order to reduce their dependence on the dollar. While the U.S. has a reserve of 9,200 tonnes of gold, China has 1,054 tonnes and India 565 tonnes. No wonder, as emerging economic superpowers China and India want to add to their reserves. Industrial use of gold is on the rise the world over. With the U.S. economy still drifting with the threat of the dollar losing its undisputed position of reserve currency, the rush to gold is increasing. The zero-interest regime in the U.S. is driving more private individuals to go for gold.

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