Should investors keep gold in their portfolio? Here's what market guru Anil Singhvi says
Anil Singhvi, Zee Business managing editor says, "If we look at the research of the past 45 years, BSE Sensex has soared by 725 and gold has soared by 68 times. But gold has fast bridged this gap in the last 20 years. The 20-year research shows that Sensex and gold have risen at the same rate. Since, gold has given the same return as Sensex in the last two decades, and its long-term average is the same as that of the equity market, you must have gold in your portfolio."
The charm of gold is everlasting. Right from the mythological age to the present time, owning a good amount of gold is considered as a mark of achievement.
Gold loses its value only to a certain extent, but it gives good returns in the time of financial meltdown.
When markets suffer, as happened during the coronavirus pandemic, gold shines and trades at a higher price.
But when seen as an investment option, comparisons are drawn between gold and other forms of investments, including equities, to know which of the options has given better returns?
Anil Singhvi, Zee Business Managing Editor, says that notwithstanding its past performance, the gold price has increased at the same pace as the equity market and one must have gold in their portfolio in current times.
"If we look at the research of the past 45 years, BSE Sensex has soared by 725 times and gold has risen by 68 times. But gold has fast bridged this gap in the last 20 years. The 20-year research shows that Sensex and gold have risen at the same rate. Since, gold's long-term average is the same as that of the equity market, you must have gold in your portfolio."
Singhvi says the increased growth in gold rates in the last two decades also shows growing investor interest in the yellow metal.
He, however, says the major credit of this growth goes to the fact that gold can be purchased also in the electronic form such as sovereign gold bonds (SGBs) and ETFs.
"There was a time when owning gold meant owning jewellery or biscuits. But now with the ease of holding it in electronic form, more investors are attracted to the metal. New gold investment options such as SGBs and ETFs are increasing the relevance of yellow metal in India," says Singhvi.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
If you make RDs of Rs 5,000, Rs 10,000, Rs 15,000, and Rs 20,000 in post office, what will be your maturity amount?
Special Live Trading Session on Saturday: Know why BSE, NSE will remain open on May 18; check timings
RCB vs CSK IPL 2024 Ticket Booking Online: Where and how to buy RCB vs CSK tickets online - Check IPL Match 68 ticket price, other details
Women loco pilots speak about their struggle; many men have to be informed even for 'washroom break' in a moving train
Bandhan Bank Q4 FY24 Results Preview: PAT, interest income likely to grow in almost double digits; asset quality may improve
12:58 PM IST