Gold has witnessed a significant surge in its value lately.
The precious metal soared by over 13% in the initial quarter of 2024, solidifying its position as one of the top-performing asset classes.Looking forward, industry experts are bullish on gold.In a recent conversation with CNBC Awaaz, Mahendra Luniya, Chairman of Vighnaharta Gold, projected that gold rates may reach ₹1.68 lakh per 10 grams by the year 2030.The surge in gold prices finds its roots in a confluence of factors, ranging from geopolitical tensions to global economic slowdowns.Central bank purchases, inflationary pressures, heightened retail demand, increased interest through Exchange-Traded Funds (ETFs), stagnant gold mining production since 2016, and the ramifications of de-dollarisation have all contributed to the rise in gold's value.
Experts caution against waiting for a price correction, as the volatile nature of the market offers no guarantees of a downward trend.Instead, they advocate for a strategic approach that capitalises on gold's inherent qualities.Gold serves as a reliable hedge against inflation and acts as a diversification tool within investment portfolios.Therefore, experts suggest that investors carefully evaluate their portfolios and consider dedicating a portion, typically around 10% or less, to gold.In this regard, Sovereign Gold Bonds (SGBs) emerge as an attractive option.These bonds offer a sense of security against market uncertainties and facilitate portfolio diversification.Given the promising outlook for gold prices, experts say purchasing gold is a prudent move for the next 4-5 years.
Gold has witnessed a significant surge in its value lately. The precious metal soared by over 13% in the initial quarter of 2024, solidifying its position as one of the top-performing asset classes.Looking forward, industry experts are bullish on gold.In a recent conversation with CNBC Awaaz, Mahendra Luniya, Chairman of Vighnaharta Gold, projected that gold rates may reach ₹1.68 lakh per 10 grams by the year 2030.The surge in gold prices finds its roots in a confluence of factors, ranging from geopolitical tensions to global economic slowdowns.Central bank purchases, inflationary pressures, heightened retail demand, increased interest through Exchange-Traded Funds (ETFs), stagnant gold mining production since 2016, and the ramifications of de-dollarisation have all contributed to the rise in gold's value. Experts caution against waiting for a price correction, as the volatile nature of the market offers no guarantees of a downward trend.Instead, they advocate for a strategic approach that capitalises on gold's inherent qualities.Gold serves as a reliable hedge against inflation and acts as a diversification tool within investment portfolios.Therefore, experts suggest that investors carefully evaluate their portfolios and consider dedicating a portion, typically around 10% or less, to gold.In this regard, Sovereign Gold Bonds (SGBs) emerge as an attractive option.These bonds offer a sense of security against market uncertainties and facilitate portfolio diversification.Given the promising outlook for gold prices, experts say purchasing gold is a prudent move for the next 4-5 years.
