The yellow metal has historic time-tested (decade old) importance: “It preserves your purchasing power” it’s considered a very good and safest investment component. We have witnessed during every financial crisis, entire world flock to the safe heaven of gold.
HOW MUCH SHOULD YOU INVEST IN GOLD DURING FYR 2021-22 ?
The answer is yes. And it should be used as technique to hedge the downside market moments smartly. A small percentage of investment (10-15% range) in gold is always helpful in rebalancing your overall portfolio during market downturn. Do note investing all your money in any one commodity is always risky business. Hence always diversify your portfolio into different commodities
REASON FOR BUYING GOLD IN 2021-22 ( COVER ATLEAST 10-15 % in your overall Portfolio)
- LIQUIDITY: GOLD CAN BE SOLD EASILY SO YOU CAN CONVERT IT INTO CASH VERY QUICKLY
- IT PROVIDES A BUFFER TOWARDS DOWNSIDE VOLATILITY OF MARKET
- GOLD IS NOT A LIABILITY OF ANY GOVERNMENT OR COMPANY.
- SAFEST INVESTMENT OPTION
- VALUE INCREASES DUE TO PRICE FLUCTUATION DAILY
- HEDGE AGAINST INFLATION AS WHEN INFLATION OCCURS THE VALUE OF GOLD RISES.
- HELPS IN DIVERSIFICATION IN INVESTMENT PORTFOLIO.
- GOLD IS A UNIVERSAL CURRENCY AND IS ACCEPTED AT ALMOST EVERYWHERE IN THE WORLD
- GOLD IS VALUABLE/INDESTRUCTIBLE.
Allocating 10% to 15% of your portfolio to precious metals with the majority in gold could be one of the best defenses against an economic crisis downturn and uncertainty.