On entering the arena of investment, the glittering spectacle of gold often bewitches investors. The escalating “today gold price in India” flickers on media screens and is a perennial topic in investment circles. Indian households hold around 25,000 tonnes of gold, valued at around $1.5 trillion. But should you invest in gold right now? Let us delve into the expert opinions and keep a keen eye on the today gold rate in Vadodara 22 carat as a representative sample.
Understanding gold as an investment, it must first be appreciated that gold is a ‘defensive asset’, a safe haven during turbulent economic times. No synchronous relationship exists between gold prices and equities. When other sectors bear the brunt of an economic downturn, gold tends to shine brighter.
In the last two years, the trends of the today gold price in India have reflected the current economic shift; gold prices have escalated due to the world grappling with the pandemic. In response to the global economy’s uncertainty, investors fled from risky assets and sought refuge in the lustrous safety of gold.
Observing the current scenario, an expert investor, Mark Mobius, co-founder of Mobius Capital Partners, stated that he still sees a possible uptick in gold prices. “The bottom line is that with the incredible amount of money being printed globally, there’s no faith in currencies anymore, and that means people want to hold something real, and that is gold,” Mobius said.
However, experts also believe it is equally important to pay attention to the local factors influencing the today gold price in India. The Indian gold market relies heavily on gold imports. Devaluation of INR against USD or any increase in import duty can cause a surge in gold prices. Thus, keeping a constant eye on the Indian economy and policies that might impact gold price is vital while making investment decisions.
Every city in India has a unique gold market that slightly deviates from the overall pattern due to local demand and supply factors. For instance, the today gold rate in Vadodora 22 carat may not mirror the general trend in Indian gold prices due to Gujarat being one of the largest gold-consuming states in India.
Gujarat’s gold consumption is primarily driven by its jewelry industry and massive gold exports. It’s because of these high stakes that even the slightest fluctuation in the today gold rate in Vadodara 22 carat can send ripples across the entire metal market.
However, imparting her insight on the matter, Aditi Nayar, Principal Economist at ICRA, advises investors to be cautious while investing at such high prices. She stated, “Gold prices have already rallied a lot, and so, those looking to buy purely for the purpose of investment should do so in a moderated manner adopting a disciplined investment approach.”
Investing in pure gold for ornamental purposes can be a good decision, given that gold jewelry never goes out of style. But as a part of an investment portfolio, it’s better to invest in the sovereign gold bonds (SGBs) or gold ETFs. Kiran Kumar Kavikondala, Director & CEO, WealthRays Securities, said, “SGBs are a good option to buy gold, and it additionally offers 2.5% interest payout per year. If the gold prices appreciate, then the complete benefit will be transferred to you. Also, if you are looking for liquidity, then gold ETF is a good option.”
Weighing in on the discussion, Rajesh Cheruvu, the Chief Investment Officer of Validus Wealth, suggested that investors should ideally have 10-15% of their portfolio in gold. It appears that while it is good to have a certain portion of your investment in gold, it is essential not to go overboard considering the volatility of gold prices.
Should you buy gold today in India? The answer is not a simple yes or no. Every investor has unique financial goals and risk tolerance. It is crucial to understand that, like every asset, investing in gold has its risks. Shilan Shah, India economist at Capital Economics, warned that prices might start falling as global economies start recovering from the shock of the pandemic.
Therefore, to make a comprehensive decision, understand your financial plan, carefully study the market trends, and importantly, the “today gold price in India” and the “today gold rate in Vadodara 22 carat” if you are located in Gujarat. Be sure to gather expert opinions and make a considered decision. Investing in gold is a marathon, not a sprint. It could be the key to wealth, provided one digs in the right place and at the right time!