Wishes for the Akshay Tritya. It has been our tradition to make an investment in Gold/ Gold ornaments on the auspicious occasion of Akshay Tritya. Keeping in view the ongoing economic scenario, especially with reference to the Pandemic, Gold seems to be the right choice for making an investment. Inspite of such unfavourable ongoing conditions, no doubt that Gold has lived to its reputation of being a safe heaven for the investors, so far in the year 2020. The yellow metal’s price is up and up since the beginning of this year and is almost about 18% up from the closing of previous year. On one hand, the stocks and crude have nosedived, whereas the sheen of Gold is getting more glittered. Most of the times, it is the trend of gold that it moves in the opposite direction as of Crude. So where the Crude is around its all times low, the gold in at its all times high.
Due the Corona problem, the most of the countries are infusing and likely to infuse more money into the system to bring the economies back on the track and the infusion of money creates an inflationary trend. But this time the inflation as expected with the infusion of money, has not gone so up. This is due to the other factors like the money has been infused by way of reducing the rates by the Central Bank.
However, Inflation will not be the single driving factor behind gold prices, but instead its shall also be effected by depression on account of COVID-19. In depression, where almost all the assets lose their value, the Gold is likely to give a positive return. It is expected that the Gold price may rise upto Rs.50000/- per 10 grams by the year end and could be even much higher during the year 2021.
So an investor may opt to invest at 10% of this total investments in the Gold bonds in order to yield some good returns.
By Sanjeev Kumar Khanna (Financial Mentor)
Disclaimer: The views expressed by investment experts on Lelepaisa.com are their own and not that of the website or its management. Lelepaisa.com advises users to check with certified experts/ at their own before taking any investment decisions.
