Is Gold investment better than Nifty 50? – Facts you should know
Do you know what?, investment in gold dominated nifty 50 this year. In first half of this year Stock Market as well as Gold gave good returns to its investors. The investors who invested in these two segments made good returns. But surprisingly traditional investment in Gold dominated Nifty 50. From January to June Nifty 50 has raised over 11% and Gold raised nearly 14% to make investors profitable.
Disclaimer
I am posting this for just educational purpose. This is not an investment advice as i am not a SEBI registered financial advisor. Please be careful while investing in stock markets or in gold. You should take care of your profits or losses. I am not responsible for anything you do.
Both are different segments
We think there is safety while investing in gold, on the other hand investing in equity is a bit risky. But a growth in India’s GDP and stability in politics made stock markets raising in first half of the year 2024. spike in inflation and low interest rates catalysed the gold rates to be high.
Things that made gold prices high are
There were many conflicts happened internationallythis year and there are some speculations that United States of America reduces Interest rates.
Many big countries banks bought gold aggressively. For example, by December 29th 2023, Reserve Bank Of India had 49.328 billion dollars worth of gold reserves, but in June 2024, it has gone upto 56.982 billion dollars worth of gold reserves. This is clearly showing that banks are interestedin buying gold aggressively.
china has bought gold for the last 18 months. The United States and Europian countries are facing financial instability.
Historical data insights
In last five years, the Gold prices are doubled. If have a deep insights from 2003, gold prices have spiked over 980%. Geojith Financial Services committee head Mr. Harish V said that Gold has demand in all the metal investments.
There are some risk factors also to be considered, beacuse of all of these, there may be sluggishness in rise of gold prices from now onwards and some speculations are telling that these price hikes can be limited.
A survey by Angel One ltd currency and commodity research member Mr. Pardhmesh Malya reveals that In India the gold price for 10 gms of 24 carrots can hit 78000 rupees in near future. In international marketsone ounce ( 31.10 gms ) price can go towards 2500 dollars. At present in India the price of 10 gms of 24 carrots Gold is nearly 74000.
Mr. Harish v said that investors can invest upto 10 to 12% of one’s total investments in gold.
Mr. Malya said that to have a good portfolio one should invest in gold upto 15%.
Conclusion
If you invest in any segment, there are some risk factors. you should be ready for all these consequences. Get proper knowledge first and then do research. Without having knowledge and understanding it is hard to make money through investing.