All That Glitters Is Gold
Dalal Street Investment Journal|August 31, 2020
It is not a question about whether you should buy equity or gold. It is more about whether it should be an essential part of your portfolio. In this article we have highlighted the reasons why we recommend gold to be an integral investment along with other asset classes
All That Glitters Is Gold

Warren Buffett, the legendary American investor, has recently done some significant churning in his portfolio. He has sold more than a quarter of his stake in the best known US financial companies such as Wells Fargo & Co. and completely exited from Goldman Sachs. At the same time, he has also acquired stake in Barrick Gold Corp., a Canadian mining company. According to the filling by Warren Buffett’s Berkshire Hathaway Inc. with Security Exchange Commission, the company has bought 21 million shares of Barrick Gold worth USD 563 million, representing 0.3 per cent of Berkshire’s holding.

Such a move has come after the gold price has already rallied by more than 50 per cent in the last year. Even year till date, it has jumped by 35 per cent and has comfortably beaten the best performing equity indices. The gold rally that started somewhere in 2018 has only gathered momentum of late due to the corona virus pandemic and geo-political tension. This move has also been driven by a combination of high uncertainty about global economy, very low-interest rates and positive price momentum. These are the conditions on account of which the gold price has historically witnessed a great jump.

Gold for the first time has breached the level of Rs 56,000 per gram recently. Though after that it has cooled offand has remained volatile. So for an investor, the moot question is whether the rise in price of gold is sustainable, especially after the recent volatility.

Golden Returns

Denne historien er fra August 31, 2020-utgaven av Dalal Street Investment Journal.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra August 31, 2020-utgaven av Dalal Street Investment Journal.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA DALAL STREET INVESTMENT JOURNALSe alt
How To Invest In An Ageing Bull Market
Dalal Street Investment Journal

How To Invest In An Ageing Bull Market

Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.

time-read
5 mins  |
July 29, 2024
Should You Entrust All Your Money To A Single AMC?
Dalal Street Investment Journal

Should You Entrust All Your Money To A Single AMC?

If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario

time-read
7 mins  |
July 29, 2024
Wild Swings Engulf Global Equities
Dalal Street Investment Journal

Wild Swings Engulf Global Equities

U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.

time-read
2 mins  |
July 29, 2024
U.S. Elections and China's Economy Hamper Commodities
Dalal Street Investment Journal

U.S. Elections and China's Economy Hamper Commodities

Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.

time-read
2 mins  |
July 29, 2024
Wealth Building For Retirement Through Mutual Funds
Dalal Street Investment Journal

Wealth Building For Retirement Through Mutual Funds

Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.

time-read
3 mins  |
July 29, 2024
Mastering Investment with Information Ratio
Dalal Street Investment Journal

Mastering Investment with Information Ratio

Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool

time-read
6 mins  |
July 29, 2024
Plan To Be Financially Independent
Dalal Street Investment Journal

Plan To Be Financially Independent

Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.

time-read
2 mins  |
July 29, 2024
❝Technology is the new game-changer"
Dalal Street Investment Journal

❝Technology is the new game-changer"

With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company

time-read
5 mins  |
July 29, 2024
What If Donald Trumps?
Dalal Street Investment Journal

What If Donald Trumps?

The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store

time-read
6 mins  |
July 29, 2024
Sectoral Gains Make A Mark
Dalal Street Investment Journal

Sectoral Gains Make A Mark

Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures

time-read
2 mins  |
July 29, 2024