Happened to see this article today:
Gold has been a reasonably good investment for [the Indian investor] over the last few decades. And that’s not because gold has been a fundamentally strong asset. But because over most of the last three decades, the Indian Rupee actually lost value vis-à-vis the US Dollar. Yes, exactly the opposite of what you have witnessed this year. The result was that even though the price of gold in US Dollar terms declined over most of this period, [the Indian investor] actually gained because the depreciation in the value of the Indian Rupee vis-à-vis the Dollar, more than made up for it! If you believe that we are entering an era of a stronger Indian Rupee, then you should know that it is the fundamentals of gold which will drive the future price of gold; not any other factor as in the past.