Kochi, Friday, August 19, 2011: Gold prices again surged to a new record high for second consecutive time on Friday with a sovereign at Rs 20, 520 and a gram of gold priced at Rs 2,565.

The hike is seen as a reflection of the surging price in international market. A rumor of likely chances of crash in American stock market is believed to be the main reason for the sudden surge in price. People in large scale are moving towards more investment in gold, considering yellow metal as a safe investment.

Gold is seen as a safe investment and added to this comes the reduction of the value of rupee in comparison with the dollar. Kerala has one of the highest consumptions of gold and silver ornaments in the country.

Traditionally, gold had been the most ideal mode of investment among the people of Kerala and also as jewellery.