Let us see how Valid the Fear is in Current Scenario and What should you do with your Gold holding?
First of all we all know that Gold is a good diversification tool. It is hedging Tool against Inflation.
The factors affecting Gold and the other classes are different, lets have a look at some of the factors.
Factors that could impact Gold prices in the coming months:
1. Gold Buying by the central bankers particularly from emerging markets could raise the prices.
2. Domestic demand was down due to high prices but now could pick up during the festive season.
3.Demand from China is on the rise, it could soon become the largest consumer of Gold.
4.The movement of the rupee against the dollar will affect prices. A weaker rupee will push gold up.
5.Monetary easing by the US fed could push gold up.
6.A further hike in import duty of gold will push up domestic prices.
HareePatti’s View: Irrespective of the current outlook on Gold, a small portion of the metal should be allocated in the portfolio. It should occupy 15-20% of the investment portfolio. Portfolio with Gold offers better risk adjusted returns. Since Indians do not have too many international investments , Gold can be a proxy for the same.
If you have not Invested in GOLD as yet… this is the Best time to Buy some through Gold Mutual Funds,ETF’s AND a Systematic Investment Plan for Rs. 5000 should be started Immediately.
For any Further Query on GOLD Investments and Options please mail at email@example.com