The rupee tumbled 3 per cent against the US dollar in 2024 as concerns over slower economic growth and a stronger greenback in global markets weighed, but it was among the least volatile currencies in the world and the headwinds may be less intense in the coming year.
Gold is an excellent asset class for diversification and should be included in all long-term portfolios.
'Gold prices thrive on volatility and more so when the stock markets trend downward.'
Given prices of the latter are at an all-time high, it makes sense to opt for cheaper precious metals.
Interview with Associate director (commodities & currencies), Angel Broking.
'You should always maintain an allocation to gold as it has the ability to counterbalance any correction in the equity market.'
Data compiled by National Collateral Management Services (NCML, a non-government body) shows a 6.3 per cent rise to 109 million tonnes (mt). The Union ministry of agriculture's first advance estimate was 100.5 mt, as compared to 102 mt in last year's fourth advance estimate.
Treat silver as part of the procyclical or growth assets in your portfolio, advises Sanjay Kumar Singh.
Despite price correction, policies that support the yellow metal will remain in place in the foreseeable future.
Since the Union Budget, gold has become costlier by 8-9 per cent because of a 2.5 per cent increase in import duty to 12.5 per cent and about a 5 per cent depreciation in the rupee.
The partially convertible rupee closed at 60.30/31 per dollar compared with 60.28/29 on Friday.
Exposure to debt funds and gold is essential even if current returns from these asset classes are low, suggests Sanjay Kumar Singh.
In the Mumbai domestic market, gold stood at Rs 30,000/10g, down 0.9 per cent, while silver fell 2.5 per cent to Rs 50,275 a kg.
Gold prices are likely to decline further to around Rs 24,500 per 10 grams by December if the rupee continues to rule at the current level.
Gold prices are set to drop further in the domestic market, owing to the rupee's appreciation.
Gold monetisation scheme will help unlock value of gold.
While global uncertainty has led to a rise in prices in 2016, there is still a lot of doubt regarding its future.
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Returns on godl have depleted in past few years,
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