Surge in Indian buying is 'encouraging' for gold investment

The recent falls in gold price have been well documented but investors have been informed that the negative press it has received may be over-exaggerated.

Lawrence Williams, writing on Mineweb.com, has explained today (August 18th) that gold has dropped during August nearly every year since 2003, but has made a strong recovery during the fall.

However, the upshot is that demand is soaring in a number of key markets as gold investors look to buy as the price reaches its lowest ebb before recovering.

Mr. Williams said: "What must be encouraging for the gold investor, particularly for those coming in at the current price level, is that a surge of buying coming in from India, the world's largest gold consumer, seems to be underpinning prices when they fall below $800 an ounce."

With such demand and the dollar unlikely to recover rapidly as the global economical turmoil looks to be far from over, it would appear that now could be a good time to buy gold.