2024-05-04 16:14:18
New Delhi: Gold has increased by more than 15% in the last three months. It has emerged as the best performing asset class since the beginning of 2024. In the last three months, due to many factors, the prices of the yellow metal have gone up. The question arises whether this boom in shiny metal will continue in future also? What should investors do? Come, let us try to understand here.
Central banks of emerging countries including India and China have been continuously buying gold for the last few months. This has strengthened the prices of gold. Gold can be a good option to diversify your portfolio and protect against inflation. It is considered the safest investment option.
Global events such as wars, political instability and natural disasters impact gold prices. In difficult times, gold prices often rise. Even when the economy is uncertain, gold prices usually increase. The reason is that it is considered a safe option.
What should investors do?
In recent times, those investing in gold have had a reason to smile. The yellow metal has increased by more than 15% in the last three months. It has emerged as the best performing asset class in the calendar year. Analysts expect further rise in gold price. The reason is that many factors giving momentum to the precious metal are positive. These include higher inflation rates, the possibility of monetary policy easing by major central banks and geopolitical tensions in the Middle East and Ukraine.
Will the rise in gold continue?
A report by DSP Mutual Fund said that gold, silver and other precious metals may remain bullish in the next few quarters. Experts say that gold is in good condition. If the inflation rate remains high then it will increase. Gold will perform well even if prices go down and interest rates are cut. The reason is that geo-political tension is fueling the prices of gold. The Russia-Ukraine war is not over. Meanwhile, tension has also increased between Iran and Israel. This will boost gold prices.
What are the methods of investing in gold?
1. Physical Gold
- Gold Bars and Coins: This is the most traditional way to invest in gold. You can buy gold bars and coins in different sizes and purity levels.
- Gold Jewellery: You can also invest in gold jewellery, such as necklaces, bracelets and rings. However, keep in mind that the gold in jewelery has a lower purity and is worth less than gold for investment purposes.
2. Paper Gold
- Mutual funds investing in gold: These mutual funds invest in gold bars and coins. This is a good option for those who want to avoid the hassle of storing and insuring physical gold.
- Gold Exchange-Traded Fund (ETF): These ETFs track gold prices and allow you to invest in gold without owning gold bars or coins.
- Gold Future and Option: These contracts give you the right to buy or sell gold at a fixed price in the future.
3. Digital Gold
- Apps to invest in gold: Many apps allow you to invest in gold through your smartphone. You can even buy gold in small quantities and sell it easily.
- Cryptocurrencies: Some cryptocurrencies such as PI and DGX are backed by gold.
The best way to invest in gold depends on your personal circumstances and financial goals. You should do your research and compare different options before investing.