Considering the gold asset, it peaked in August 2020 and for the first time rose to INR 4913 per gram from just INR 3513 per gram simultaneously in 2019. The prices of different investments such as stocks and real estate fell sharply in 2021. noticed many mutual funds urging investors to invest in gold funds as a diversification asset. Investment in gold reportedly touched around Rs 18,000 crore in November.
With gold rising above INR 5047 per gram on higher demand and safe-haven assets as investors investigate geopolitical and economic outcomes, the gold rate is expected to rise further. Although the value of gold is increasing, it is important to recognize that historically it has proven to be a good hedge against currency weakening and inflation. The gold asset makes it an extremely safe investment with a good return, more so when we live in uncertain times.
Today, with different asset classes available, there is some skepticism among younger generations about the benefits of investing in all market conditions. However, the best advantage with young people is their age, time horizon, and focus on long-term desires to select the appropriate asset, such as investing in gold.
Gold was the investor’s desire to store value for a long time, thinking of such large investments that our ancestors were able to incorporate them into our culture. Hence, continued investment in gold has been depicted in Indian festivals such as Makar Sankranti, Dussehra, Navratri, Diwali, Akshaya Tritiya and Dhanteras. Akshaya Tritiya and Dhanteras are considered highly conducive to owning gold or making new investments, a sentiment that Indians keep for protection during uncertain times.
Gold is known as the best valuable precious metal in the world. Gold has adorned many roles, from banking to producing digital items to jewelry. Yet this attractive material remains an unrivaled asset, even to a commoner, without a huge investment requirement, unlike the stock and bond markets where you first have to get your finances in order, know your time horizon and choose the better. Gold has performed well with positive returns over the long term, often outperforming major asset classes.
So let me shed some light on the different ways to invest in gold.
Today, an investor can gain exposure to the gold asset in various ways via:
1. Purchase of physical gold.
2. Gold Paper and Silver Paper.
3. Gold savings plans.
- The most common way to invest is in its pure 24 Kt form, bullion usually available as coins or gold bars and regularly deposited in safekeeping.
- The other alternative to investing in gold is in the form of gold jewelry. Although this is not the same as an investment in pure gold. This 22 karat gold is fashioned like jewelry and includes manufacturing cost, wastage, and other charges in specific cases, which are unrelated to the value of gold. This type of investment can be cherished rather than sitting in a bank locker in solid form. Another overriding fact is that the longer the generation is passed on, the higher the value as an antique apart from its gold content.
2) Paper Gold and Paper Silver: Another investment alternative of accumulating 22 karat gold and 92.50% sterling silver without buying the physical assets. A plan with a variety of advantages over other instruments such as Indian Government’s Sovereign Gold Bond or ETF/MFS from National Stock Exchange & Bombay Stock Exchange.
The best plan for new investors who want to include gold in their portfolio with a small capital. Start investing as little as 5 grams for gold and 500 grams for silver with the convenience of booking available online at www.ckcjewellers.com or in offline showrooms. To be later transformed into a proud owner of gold or diamond jewelry at a lower booking or billing rate within 11 months.
3) Gold Savings Plan: Invest in another signature program – GSTD or GAAP. The main features are to invest according to your financial situation, peak market conditions or your investment horizon to own a jewelry wardrobe. Choose the lowest: either the average rate or the current rate to benefit from the return on investment. For more details and to register, visit www.ckcjewellers.com/gaap-gstd.
You need to regularly invest around 5-10% of your income in gold to build up a long-term corpus. Although gold’s return on investment relies entirely on price appreciation, unlike bonds or stocks, they have been doing well for the past few years. However, gold has fluctuated considerably over the past few years and has come back with strong gains.