Gold, the yellow metal, desired by everyone and considered as a universal currency. Gold prices tend to rise over a period of time and is a good instrument which hedges against inflation but these few years it has shown a drastic increment. Now in 2020 it is at 41500 which was 31450 in 2018 so it has shown around 15% growth (CAGR) in two years. But if taken a longer horizon for like 10 years the returns are around 8% CAGR.
Recent rise in pricing was somewhat linked to the trade war between The East and The West and now ongoing virus outbreak in China which is posing a risk on the world trade. This Tuesday 18/02/2020 United States imposed tough economic sanctions against a Russian oil giant that is keeping Venezuela’s ruling government afloat, which added more fuel to the prices going up.
One should always consider Gold as some component of their investment portfolio and systematically keep buying in small quantities.
(My quote about rising Gold prices published in today’s (20 Feb 2020) Maharashrta Times page 12. Do take a look)
Anand Mhapralkar
Certified Financial Planner^CM
Anant Wealth 