GIFT CARD Privileges

Invest In Gold – Why?

The global gold market is estimated at 4,021 tons valued at close to USD 231.5 billion at average value of LBMA gold price of $1,799.0 per ounce. Market has seen an increase of 7.1% as compared to 2020. Demand for gold gets its highest contribution from jewellery retail with 55% of share to overall gold demand.

GOLD IS AN IMPORTANT PORTFOLIO-DIVERSIFIER

Gold jewellery as a prominent savings asset class: Purchase of jewellery is not limited to consumption like fashion, but it has a strong savings connotation. This is further amplified in rural areas with relatively lower access, literacy and acceptance of other financial savings instrument.

Price discovery of gold is more transparent than studded jewellery: Gold prices are easily available and have universal acceptance leading to more liquid and assured return. However, in case of studded jewellery price discovery is not transparent and resale value is limited relatively.

THE VALUE OF GOLD IS ON THE RISE

Trends amplify the traditional importance of gold to Indian markets. An increase of 1% in gross per capital national income leads to rise in gold demand by close to 1%. The value of gold as protection against inflation is well documented with growth in gold prices has been higher than inflation over the last 10 to 15-year horizon. As per estimates for each 1% increase in inflation gold demand increases by 2.6%.

GOLD IS ROBUST

Gold is known as the safe-haven asset, and whenever we see a meltdown in the equity markets or prospects of loose monetary policy, its price begins to explode to the upside. Currently, the gold price has a strong negative correlation with the equity markets meaning when the equity markets fall; investors pour money into gold and vice versa.

GOLD ENSURES PRIVATE OWNERSHIP

When you invest in gold, not only does it provide significant returs upon the initial value of investment, but also ensures that you have complete private ownership over it.

LIQUIDITY AND PERSISTENT VALUE

Indian jewellery retailing is rapidly transitioning towards organized retail. Gold prices are easily available and have universal acceptance leading to more liquid and assured return As gold will continue to be a haven asset class and be perceived to have intrinsic value.

It’s one of the best-performing assets in the world.



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