The Buyt Desk
The prevailing rate of 24k, 10gm gold is Rs 59,525.00. It is the all-time high price of yellow metal. Last year, its prices grew a few points during this period and came down. People invested in gold and made a good profit at that time. Now, if you again want to draw profit from the gold price fluctuation and are in doubt about whether to invest in gold or whether it’s been too late to invest? There are 6 factors that indicate that it is the right time to invest in gold –
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Statistics show that most developed countries may have slow growth in the financial year 23-24, a positive thing for gold.
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The financial market was volatile last year and is expected to be so in the coming years. It is a positive sign that gold prices will spur further.
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Most developed countries are facing moderate to mild recessions. It is again positive news for gold.
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The central banks of different countries are adding gold to their treasury to cut down their dependence on foreign reserves. Positive news for the yellow metal.
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The crypto market has been crashing and making people realize that nothing can replace gold. It is the only hedge in the volatile market.
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Most major central banks across the world have been increasing interest rates. The rise in the interest rate means a downfall in the gold price. But, because inflation is not slowing down, chances are high that the hike will slow down and stop eventually. It is another positive sign for gold.
If it happens that all the banks in the world do not increase their ROI, then things will remain positive for gold. However, considering the prevailing uncertainty, it is difficult to predict the market.
While considering investing in gold, it is imperative to know that gold is not like other asset classes whose value calculation is directly related to the values of other assets and cashflows in the market. Gold price gets influenced by demand and supply. The geopolitical disturbances disrupt this equation. It makes the gold prices remain dormant for a long time, and also a sudden change in the price.
As far as investment in gold is concerned, you can rely on gold as it has performed well in the last couple of years. However, it has failed to give the kind of return the commodity market delivers always. Giving 5-10% of your portfolio to gold is a good approach when you look for a long-term investment. Experts say that it should never be more than 15% of the investment portfolio in any case.
The rise in the price of gold might allure you to invest in it. But don’t be irrational, or your entire calculation may go wrong. If you have already allocated 10-12% of your investment to gold, do not increase it further.
