Helping You Build Wealth With Honest Research
Since 1996. Read On...

MEMBER'S LOGINX

     
Invalid Username / Password
   
     
   
     
 
Invalid Captcha
   
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  

Revealed
India's Third Giant Leap

This Could be One of the Biggest Opportunities for Investors




Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
By submitting your email address, you also sign up for Profit Hunter, a daily newsletter from Equitymaster
covering exciting investing ideas and opportunities in India.

AD

Should we Invest in Gold now

Is this the right time to invest in gold?

This is a common question in every Indian household. The usual answer is yes. In fact, many people don't bother with this question. They just buy gold without a thought.

Such is the trust Indians have in gold.

But as financial markets evolve and Indians become more sophisticated investors and traders, we are increasingly asking this question.

Well the answer lies in your reason for investing in gold. Why do you want to buy gold?

Are you investing for the long term? Are you trying to diversify your portfolio? Do you want to speculate on the gold price? Are buy buying gold because of a wedding in the family?

The answer to these questions will decide the timing of your purchase.

If you're a long term investor, a good strategy is to buy gold on dips. Whenever gold falls 10% or more consider making a purchase. Overtime, this should be quite profitable.

If you want to diversify your portfolio, you could consider buying gold almost any time. The goal here is to introduce another asset (gold) into your portfolio or to increase gold's share of your portfolio. You should do this if the amount of gold in your portfolio is low (below 5%) or is non-existent.

At Equitymaster, we suggest our subscribers to hold at least 5-10% of their total investments in gold.

Some people might prefer a higher share of gold (15-20%) in their portfolio because they give great importance to capital preservation.

If you're speculating then you should attempt to time the market correctly which is not an easy task. On the long side, you should attempt to enter gold when it has just begun a rally. On the short side, you should attempt to enter when it has just begun a decline.

If you're buying gold for a wedding in the family, your timing will depend on how close the wedding is and if you will buy gold only on certain religiously important days. The price would be a secondary consideration.

In this case planning ahead for the wedding and accumulating gold slowly over many years will greatly reduce the financial burden.

To know more about gold, check out our article on how to invest in gold here: How to Invest in Gold?


Why are Gold Prices Falling?

Jul 25, 2024

Why did the price of gold fall? Read on...

This is how Gold Performs when Inflation is High

Jun 15, 2022

Is gold the best hedge against inflation? Find out...

Does Gold Make Your Portfolio Crash-Proof?

Mar 18, 2022

Rahul Shah spills the beans on gold as an effective hedge for your equity portfolio.

US$ 2,000 Gold is Here! Does it Make Sense to Increase Your Allocation?

Mar 10, 2022

If you are under-allocated to gold, strategically increasing your allocation would be a sensible move.

Gold or Silver: Which is Better

Feb 18, 2022

Between gold and silver which one should you prefer?

Should You Invest in Gold this Diwali?

Nov 3, 2021

In this video, I'll show you the best time to buy gold this festive season.

When Will Gold Prices Fall?

Mar 19, 2024

Gold seems to be in a bull market. How long will it last?

Why Rising Interest Rates Won't Stop Gold

Jun 9, 2022

This is why I'm bullish on gold.

Gold is Hot Again. Should it be Your #1 Safe Haven Asset?

Mar 14, 2022

Should you invest in gold to protect yourself against a market crash?

Will Gold Crash Due To Russian Selling

Mar 4, 2022

Should you worry about Russia selling its gold?

Gold & Silver: This Samvat to the Next

Nov 4, 2021

Should you invest in gold and silver this Diwali? Find out in this video...