Should you invest in gold? - PowerPoint PPT Presentation

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Should you invest in gold?

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gold is an unproductive asset. Its prices are highly determined by the supply of & demand for. Due to a limited supply, its prices tend to grow over the years with growth in demand. – PowerPoint PPT presentation

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Title: Should you invest in gold?


1
  • Should you invest in gold?

2
Investment in gold has never helped anyone
become wealthier since its prices seem to rise
only with the inflation in the economy and not
any higher.
3
  • Broadly there are four investment options that
    are used to construct a well-diversified
    investment portfolio.
  • Fixed income or debt
  • Real estate
  • Equity
  • Gold

4
  • Investment in gold has never helped anyone become
    wealthier since its prices seem to rise only with
    the inflation in the economy and not any higher.
  • Broadly there are four investment options that
    are used to construct a well-diversified
    investment portfolio.

5
  • In the Indian context, gold assumes a greater
    importance due to social cultural reasons. Here
    gold is synonymous with status, wealth, security
    protection.
  • In the Indian families, gold is often purchased
    on various occasions and festivals.

6
  • Gold is an unproductive asset. In the Indian
    families, gold is often purchased on various
    occasions and festivals.
  • Its prices are highly determined by the supply of
    demand for
  • Due to a limited supply, its prices tend to grow
    over the years with growth in demand.

7
  • Whether investment in gold results in long-term
    wealth creation?
  • The answer is NO. Gold, so far, has never
    helped anyone get wealthier as its prices seem to
    rise only with inflation in the economy and not
    any higher.

8
  • Gold helps you protect the value of your savings
    not enhance it which has to be everyone's goal.
  • Average inflation in the Indian economy in the
    post-independence era has been observed to be in
    the range of 8 to 10 pa the price of gold has
    also moved up at the same pace.

9
  • Majority of people across the world have created
    substantial wealth by carefully investing their
    savings in real estate and equity as opposed to
    the popular choice of gold.
  • Gold has some unique qualities. It can be
    displayed physically worn that can bring joy
    and pride to some.

10
  • It is not that investment in gold should be
    avoided but not more than 10 of your total
    investment should be invested in gold or gold
    bonds or Gold ETF or gold mutual fund.
  • For more support on this, visit the Commodity
    Trading in Chennai.
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