Investing in GOLD

All of us who thought that buying gold by our parents and grandparents in every occasion was a stupid and a very expensive thing, will be surprised to hear that Gold has beaten inflation today and will keep on beating inflation. Gold seems to be the one investment which time and again has been proven to be a solid investment and every portfolio should have exposure to gold. I like most of us out there also have some investment in gold but no in the true form of investment but just through all the gold that my wife keeps buying as jewelery or keeps getting the same from some relative or other.
Some experts feel that every portfolio should have atleast 10% of the total investments in the form of GOLD. This can hedge a lot of investments. A survey done by the Business Line shows the following results on the reasons of why people buy gold :

Some of the advantages you get in investing in GOLD are :

1. High Liquidity
2. Easy to Buy
3. Hedging against inflation

But it seems GOLD has not given returns as high as the SENSEX has given over a period of time but then it has stayed above the Inflation. Plus how can we ignore the emotional value attached with owning Gold.

So dont worry about investing in GOLD, just remember dont invest too much in GOLD.

Related Articles

Cost Of Living In Delhi

Contingency Fund

Budgeting for you

Life's Goals

1 comment:

Learn Stock Market said...

Very useful articles. I and my friend to do some research. I am very glad to see such information, I find the very long period of time, was finally I found, thank you.