The rising price of the precious metal has helped the central bank increase overall forex reserves despite currency reserves not rising, and sometimes even falling.
In 2022, gold emerged as the top performer among all conventional asset classes with over 14 per cent returns mainly owing to the depreciation of the rupee.
Chirag Mehta, senior fund manager -- alternative investments at Quantum AMC, shares his views.
There are 350,000 jewellers, of which 13,000 are BIS-certified.
This is good news for the central government at a time when crude oil prices are rising.
'It makes sense to have gold in one's portfolio keeping the political and economic risks of 2024 in mind.'
Only 21 tonnes of gold have been mobilised in the last eight years under the gold monetisation scheme (GMS) which was announced by the Government of India in November 2015. This could be considered as a failure as the scheme has undergone several changes with a revamped GMS announced in April 2021 to improve collections. This figure was released by the World Gold Council (WGC) on Wednesday in its report titled 'Gold Investment Market and Financialisation, in India gold market series'.
'Avoid going overweight on gold. But maintain a 10 per cent allocation via sovereign gold bonds,' Bajaj Capital MD Sanjiv Bajaj tells Sarbajeet K Sen.
A Ganesh Nadar/Rediff.com speaks to common folk in Tamil Nadu about whether they will invest in Arun Jaitley's gold monetisation scheme. Their reactions will not make the Union finance minister happy.
Despite a high current account deficit (CAD) and lower interest rates abroad, the Union government will not go for a sovereign bond issue to get more dollars.
Investors should allocate 10 to 15 per cent in their portfolios to gold through sovereign gold bonds.
Gold burnished its image as the go-to asset class during turbulent times. However, investors seemed to have missed the bus. Net inflows into gold exchange-traded funds (ETFs) plunged to a four-year low of Rs 653 crore in 2022-23 (FY23), even as gold emerged as the top-performing asset class.
While SGBs are a sound investment, they aren't worth buying at any price. The interest income you earn from them will not justify paying a high premium.
Gold is an excellent asset class for diversification and should be included in all long-term portfolios.
'Gold could return 10% to 12% in the next two-three years.'
For easy and wide access, the government plans to market the bond through post offices and various brokers.
People can deposit idle gold with authorised agencies and take advantage of the price escalation of gold as well as earn interest on the deposit.
At a time when the whole world is going ga-ga over stocks and debt is too easy to borrow, do not forget gold, says Anil Rego.
India's gold obsession needs a correction.
Given the prevailing uncertainties, investors must maintain a 10-15 per cent allocation to gold in 2023.
'In most schemes, where the monthly investment is a fixed amount, investors run the risk of the price of gold rising during the tenure of the recurring deposit,' notes Harsh Roongta.
The government should partner with commodity exchanges such as MCX.
'Gold prices thrive on volatility and more so when the stock markets trend downward.'
It makes sense to wait for govt schemes such as gold bonds.
'It's important that every portfolio is well diversified.' 'My own portfolio is diversified across asset classes: 50% is in equity funds, 15% in international schemes, 25% in debt funds and 10% in sovereign gold bonds.'
Despite its recent underperformance, gold must be a part of your portfolio.
Young investors could allocate in the proportion of 70:20:10 to equity, debt and gold.
The Bureau of Indian Standards has certified 33 hallmarking centres in the country to act as collection and purity testing centres for the gold monetisation scheme.
For the first time, consumers, including those at the so-called bottom of the pyramid, are monetising gold by taking loans from banks, offering the yellow metal as collateral, says Tamal Bandyopadhyay.
While the government has not made the report public, sources said the panel had recommended a sharp cut in all taxes on the gold business, including import duty and goods and services tax which amounts to over 13%.
'You should always maintain an allocation to gold as it has the ability to counterbalance any correction in the equity market.'
Given the economic trends, it might make sense to allocate some savings to gold.
'Gold could benefit from the resulting risk aversion, as happened last year.'
Anil Rego, CEO, Right Horizons, answers your personal income tax queries.
'Investors with as little as Rs 1 can start investing in digital gold.'
India imports a staggering 1,000 tonnes of gold every year, draining out foreign exchange and putting pressure on the fiscal deficit.
This may free up resources for productive or lending purposes.
The recently approved government scheme provides both liquidity and returns.
Finance Minister had announced the scheme in the Union Budget.
Stocks of smallcap and midcap companies, which had caught the fancy of retail investors, also feature in the portfolio of leading politicians in addition to bluechip stocks.
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