Gold is the talk of the town this monsoon season. Geyatee Deshpande identifies factors driving the gold prices higher and advises being cautious despite gold being in the bullish territory. Read on…
Gold has outshined all the other asset classes in 2019 on a YTD basis so far. Gold is up by nearly 17 per cent on a YTD basis, while equity is up by merely 3.6 per cent. As gold competes with equity for headlines for opposite reasons (gold uptrend and equity downtrend) it is easy for investors to be overwhelmed by the yellow metal. Gold, after all, is gold.
Gold is popular as an investment asset all around the world and its popularity has been increasing with every passing year. India being the world’s second biggest gold consumer, Indians consider gold as a status symbol as well.
According to the World Gold Council, since 2001, investment demand for gold worldwide has grown by an average of 15% per year till date. Various reasons are responsible for this demand. One of the important reasons was that after going through economically unstable periods, the market felt that it is safe to hold gold and such other metals in physical form. This increasing demand for gold has consequently led to price rise as well. Over the years, the central banks have turned into net buyers of gold from net sellers as part of their risk management strategy.
Esta historia es de la edición August 19, 2019 de Dalal Street Investment Journal.
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Esta historia es de la edición August 19, 2019 de Dalal Street Investment Journal.
Comience su prueba gratuita de Magzter GOLD de 7 días para acceder a miles de historias premium seleccionadas y a más de 9,000 revistas y periódicos.
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