Gold prices are set for yet another bull run on the back of concerns running high about European economy and investors rushing for gold under haven buying. The movement well understood when most of the investors opined that gold persist as the most safe investment instrument above all commodities and equities.

Gold prices have struck yet another high on Friday, June 18, 2010 crossing USD 1260 per ounce on Comex division of New York Mercantile Exchange (NYMEX), however in India gold prices remained range-bound between Rs.18702 and 18897 per 10 grams mainly on the back of Indian rupee firming up against US Dollar hitting near one-month high levels.

On Thursday, the partially convertible rupee had ended at Rs.46.30/31 per dollar, off an intra-day peak of Rs.46.28, its strongest since May 20. It strengthened about 0.5% from the previous close of 46.55/56.

In an interaction with CommodityOnline, Ashok Mittal, VP & Country Head, Karvy Comtrade Ltd maintained that investors should invariably invest in gold to stay unaffected in the inflationary situation and devaluation of currency. Gold is a classic hedge against inflation and devaluing paper currency. Considering the current European debt crisis, I think gold is the only investment instrument for the investors to invest for long term, Mittal said.

Gold has emerged to be one of the strongest investment instruments in the recent troubled times. The gold prices in the international markets have appreciated by over 12% so far during this year.

However, other commodities including silver and crude oil have also remained in the consideration for the investors. An online poll conducted by revealed that 53% of the investors believed that silver is the second best 'safe haven' in the current turbulent time.

Out of the total 25080 respondents, 13395 agreed for silver being the second best safe haven after gold, while 10830 respondents disagreed with the motion.

Meanwhile, 78% of the respondents believe the current period is the right time to invest in gold even if the prices are hovering at the peak levels, while 19.6% disagree with the poll. Gold prices have been on the rise over past sixty days when prices shot up from the lows of $ 1127.50 per ounce to $1256.50 per ounce in the recent trades, rising over 11% in just a few weeks.

However some of the analysts believe that this is a mad rush after gold and people are investing heavily fearing they might be left dozing and prices would shoot up at exorbitantly high levels. But according to them, gold is not something, where investors invest by taking rational decisions. However, majority of the investors disagreed the argument and maintained that investments in gold are done after making rational decisions.

Over 63% of the investors believed that gold investments are made after taking into account all facts about gold price movement.

Meanwhile, oil & gas remained the least preferred investment instruments as 60% of the respondents disagree that oil & gas sector is still the best pick for investments. Minority respondents, 35% believed that there is still room for investors to get into investing in oil & gas sector.

Overall, the poll indicated that among all key investment instruments, gold continued to maintain its most preferred position with most of the investors selecting gold as the most safe haven in the crisis and in the times of recovery too!