Hyderabad:There is uncertainty in the economy for the past two years. We can attribute this to many factors, including the Corona pandemic and the ongoing international crisis. Therefore, this uncertainty is worrying investors. At the same time, stock market indices continue to fluctuate sharply. Hence, gold is becoming a better choice for those who are looking for a promising investment in these circumstances.
Gold may not yield huge returns compared to other investments, but gold shines more brightly compared to other schemes during crises. Therefore, there is a demand for gold in all countries across the world, regardless of the value of the currency. As the value of the currency depreciates in the face of limited supply of gold and its value does not decrease. When there are any negative consequences around the world .. we see gold prices rising. Its price has been rising since the start of the Russia-Ukraine war.
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Investment in cash is required to maintain diversity in investment. Make sure the allocation is less than 5-10% of the total portfolio. Gold can be purchased when needed in the form of jewellery. You can opt for Gold ETFs and Gold Funds with a view to the future. Investing in sovereign cash bonds also yields interest for six months and there will be opportunity for investment growth.
Gold Exchange Traded Funds (ETFs) facilitate the need to buy gold directly. These are inherently linked to domestic gold prices. Therefore, these should be considered as invested in gold when you invest in ETFs. These have to be purchased through a Demat account. So, there is no need to worry of security. The price of a unit is equal to a gram of gold. So, you have to invest a bit more. Alternatively, you can opt for Gold Funds. These act like regular mutual funds. You can start with investing at least Rs 100 in it. Gold ETFs can be considered as a way to deposit gold for investment diversification, future marriage and other good deeds, said Chintan Haria, Head-Product Development, ICICI Prudential AMC.
