As global economies passed through one of their worst phases because of Covid, investors sought refuge in safe-haven assets, such as gold
Policies that support the yellow metal will remain in place in the foreseeable future
During Diwali, you should invest or gift an asset that grows in value
Experts recommend buying gold as the fundamentals supporting a gold rally have not changed.
The move is seen as a game changer for India's bullion industry, and is expected to put India in a position to set its own price of gold
Those keen on buying gold as investment will be better off with sovereign gold bonds or ETFs
In the July SGB issue, bonds equivalent to gold worth 4.13 tonnes were sold, according to the official data
Gold exchange-traded funds saw hefty net inflows of over Rs 3,500 crore in the first six months of this year as investors continued to hedge their exposure to riskier assets amid the Covid-19 crisis
Currently, transaction in paper gold is available in the form of exchange-traded fund
Indian households supposedly hold 25,000 tonnes of gold valued at Rs.121.5 trillion, or almost 60 per cent of India's GDP.
After such a humongous run-up, investors may feel wary about investing more in gold at this point of time
Whenever there is a high level of fear or panic, either in the economy or the markets, money tends to move into gold.
Buy good stocks in small quantities, as there could be more pain
The strong performance does not mean that the bull run in the yellow metal has run its course
But investors who want the flexibility to alter their asset allocation may avoid these 3-in-1 funds
2019 taught us that investments need to be diversified, and investors need to trust their money with well-regulated entities only
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Gold is the third-most popular investment choice, with 46% of all global retail investors choosing gold products - next only to saving accounts (78%) and life insurance (54%)
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An allocation of 10-15% of portfolio is recommended for gold; use any correction as an opportunity to add more gold to portfolio or keep allocating to gold in a systematic manner