Business Standard
27th February
7-year high: Gold climbed to a 7-year high last week, surpassing the $1,600 level.
- The sharp rise is, in all probability, the outcome of worries about the global economic impact of the coronavirus outbreak.
- The World Health Organization last week confirmed 73,332 cases of COVID-19, the new coronavirus. Of these, over 2,500 have died so far in China alone, according to WHO.
- As a result, capital is moving to gold from assets impacted by the outbreak. Gold is a safe haven for investors looking to avoid volatility in risk-prone avenues.
- In India, too, April gold hit a new high of Rs 41,798 per 10 grams on February 20. Experts say investors should buy on dips and go long on the metal as the upside remains intact.
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A few links for further reading
Invest and emigrate
The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.
Small savings schemes
Investors in small savings schemes breathed a sigh of relief when the government announced on October 1 that interest rates on these instruments would not be revised for the fourth quarter of the calendar year. With the economy witnessing a slowdown, and the stock markets also turning volatile, many investors are looking for alternative avenues to park their savings. Small savings schemes, with their sovereign guarantee, have emerged as a viable alternative.
Hard path to growth
The signals for the economy are not positive: overall demand is yet to pick up; the share of total exports in India’s GDP is declining, and industrial output pattern remains worrying.