Everybody is talking about gold these days...Talk about Iran as an upcoming nuclear Arsenal or America's turmoil in the sub-prime mortgage crisis, not so far deep recession........I do not want to get into the deeps of macro economics as to why Gold may be a good hedge at these times... Having gold in ones portfolio can help in keeping investments sturdy. It is at all times a good asset to hold on to in ones portfolio for these simple reasons
Any year is a good year for buying gold. It’s such a good defense at bad times in ones portfolio. Putting non-correlated investments together will make a safer portfolio.
For its high liquidity values. It’s a savior during financial emergencies.
One need not track the price movements religiously like one does in equity markets. Price movements are not so volatile. Gold prices may not fall sharply. The macroeconomic fundamentals remain the same and isn’t likely to change overnight.
Things to look for before buying this metal:
Buy hall marked coins or bars as they come with a stamp of purity. So, when you want to sell, you can be assured of a good price.
One can also buy pure gold from Banks these days. Banks charge a premium of up to 15 per cent. But do remember that the banks won’t buy back the gold from you as Reserve bank of India does not allow buy back. So you need to sell it to a jeweler instead.
Gold bonds issued by banks are another sensible way of investing in gold.
Gold exchange-traded funds are the best for retail investing. It helps in having gold without having it in a locker. It comes in a Demat form. Dematerialization of gold eliminates risks related to physical storage. So one can buy gold with so much ease as buying Equity.
Suguna Vinodh
She is currently a home maker and a mom based out of California. The views expressed in this article are her own. All copyrights and Trade Marks are duly acknowledged. She can be reached via the link on the right tab on this page.
