Since time immemorial gold has been considered as the safest investment option in times of uncertainties, including situations such as rising inflation, geopolitical risks, high interest rates and real negative returns on savings.
Inflation has been steadily rising to alarming levels both in India and overseas. RBI Governor Shaktikanta Das has forecasted that inflation rate in India will hover around 6% in 2022. The annual inflation rate in terms of CPI for India in 2022 is expected to be 7.4%. In fact, for June '22 WPI was a whopping 15.18%, slightly lower, and 15.88% in May this year.
Globally, the US, too, saw its June CPI reach 9.1%, which was a multi-decade high. The war in Ukraine and the resultant sanctions on Russia has crippled the supply of both food and energy, pushing prices of both commodities higher, fuelling inflation world over.
However, hyper-inflation, the war in Ukraine, uncertainty about global growth, warnings of a global recession, negative real interest rates and other issues seem to have no bearing this time around. Contrary to traditional beliefs (gold acts as a hedge against uncertainty and inflation), the yellow metal is acting differently.
WEAKNESS IN GOLD PRICES
Denne historien er fra August 2022-utgaven av Beyond Market.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
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Denne historien er fra August 2022-utgaven av Beyond Market.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
PRUDENT PRACTICES
Banks worldwide navigate a complex balancing act, steering economies toward growth while safeguarding financial stability through thoughtful management of interest rates and credit risks
RETAIN ROULETTE
Inexperienced investors spin the market wheel, chasing dizzying valuations and risking a bubble burst
UNRAVELED THREADS
Bangladesh's crisis disrupts global textiles, offering India a potential opportunity, but production constraints limit its gains
PASSING THE BATON
Succession planning helps ensure uninterrupted leadership
RISKY BUSINESS?
SEBI's efforts to protect retail investors from derivatives market risks could inadvertently dampen market volumes
INFLATION-PROOF YOUR CHILD'S FUTURE
Inflation might be stealing your child's future, but children's mutual funds can be their superhero
EMBRACE UNCERTAINTY, SAYS MARKS
Howard Marks urges investors to embrace uncertainty, long-term thinking, and focus on controllables, shunning in his memo “The Folly of Certainty”
IMPORTANT JARGON
70% OF INDIVIDUAL INTRADAY TRADERS IN THE EQUITY CASH SEGMENT MAKE LOSSES, FINDS SEBI STUDY
AN ASCENT T'O NEW HEIGHTS
The IMF predicts India's economy to reach 55 trillion by 2047, driven by various economic indicators showing positive growth and government initiatives
CARRY TRADE CRASH: GLOBAL MARKETS REEL
Japan’s Policy Shift Sends Shockwaves Through Global Markets, Including India, as Yen Carry Trade Disintegrates
