Why gold prices will continue to stay high

Vivek Kaul, ET Bureau

Gold prices have been on a roll over the past few years. The precious metal has given a return of about 160% in the past five years. That is, if you had invested Rs 100 in gold back then, it would be worth around Rs 260 today. Now, compare that to the investment made in the stock market during the same period. The 50-share NSE Nifty Index, which is a broad representation of the Indian stock market, has grown by around 83%, which means that Rs 100 invested in the stock market five years ago would have grown to Rs 183 by now.

The point is: return from gold has been almost double than from stocks. But that, as they say, is the past. What about the future? Will gold continue to perform as well as it has in the past? The answer is most likely yes. Gold prices will continue to rise even further in the days to come. Here are some reasons why.