Gold prices have been steadily declining. Last year, gold in India rose to an all-time high of Rs. But since then it has been less than 10 thousand rupees. This is why investors around the world are disillusioned with gold. They include Warren Buffett, one of America’s leading investors.
Buffett grinned at the gold
The gold buffet irritation cannot be hidden from anyone. He often mocks those who invest in gold. They believe that gold is an unproductive asset. So when his company decided to invest in a gold mining company in August last year, it made headlines. But, investing in a gold mining company is not buying gold.
Why shares should be sold
However, the decision to sell Barrick Gold Corp’s shares seems logical. The company’s quarterly profit fell 50.7 percent. The company’s profits have been hurt by low production in the Dominican Republic’s Nevada Gold Mines and the Pueblo Viejo Mine.
Should You Walk A Buff?
Gold prices have been falling over the past several weeks. Improvement in economic activity around the world is not a golden signal. Now the buffet is out of gold, so should you even lower your investment in gold? Most analysts have no answer. Yes, if you own more than 5-10% of your total portfolio of gold, you should prioritize other assets.
What is Analyst
Ladder7 Financial Advisor Founder and Principal Suresh Sadagopan said, ‘We cannot follow in the footsteps of Warren Buffett. He is a great man and has his own ideas. What he does with his portfolio is not what we do. That said, gold is not a role in the portfolio. So gold should not be ruined. It is true that economic recovery is happening right now and gold may not be doing well. But I believe gold should always be in your portfolio to reduce risk. This stabilizes the returns on the portfolio.
What is the best way to invest in gold
Sadgopan said sovereign gold bonds are a good way to hold gold. It is a paper asset and has its own tax benefits. This yields a 2.5% profit every year. Gold has fallen 18 per cent since August last year. It is not expected to increase in the coming days. Gold at its current price of Rs.
The attraction towards gold has increased
But in the last few months, the attractiveness of gold as an investment option has increased. This is outlined in data from Amphithe, a mutual fund industry organization. Gold ETFs rose to Rs 431 crore in December The total investment amounted to Rs 624.87 crore in January. From January 2019 to January 2021, it was worth Rs 48159.2 crore.
What works in gold in the portfolio
Vidya Bala, founder of mutual fund research firm PrimeInvestor, said gold was meant to protect retail investors’ volatility. The need to protect your portfolio from the volatility in equity still persists if someone is allocated for this purpose, he said. If gold holdings in one’s portfolio increase due to price fluctuations, it should be balanced.