Gold has risen sharply due to rising risk aversion
Gold is usually seen as a safe-haven when stocks are falling or when inflation is rising. With prices of the yellow metal hovering near record highs, people are also putting off their jewellery purchases. Along with a subdued marriage season, the orders with price open and settled on delivery day, too, are getting cancelled. Apart from high, volatile prices, there is no gold rush yet for the safe-haven asset, crimping demand.
This Vikram Samvat year 2070, ending on Thursday, has proved the worst in 17 years in terms of return on investment in gold.
If you missed the primary market bus but still want to invest in Sovereign Gold Bonds, then feel lucky.
Move 10 per cent of your portfolio to the yellow metal.
It's good for diversifying portfolio and saving for long-term goals
Movements in gold prices will depend on the US' interest rates.
Markets now expect the Fed to normalise rates gradually.
Despite returns from gold down over 5% in the past three months, it is a good idea to keep this asset class in your portfolio.
His wife was allegedly beaten up too.
On gold buying occasions such as Akshaya Tritiya, Chiraj Mehta points out, investors are often confronted with the question: Should I make just a token purchase, or should I buy more towards building my allocation in the yellow metal?
Those interested in investing in gold have shifted to instruments, such as sovereign gold bonds and gold ETFs. Many others are, in fact, selling gold or using it as collateral to generate short-term liquidity.
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