Gold Near Rs 1 Lakh: Should You Invest Or Wait? Experts Share Insights
Gold Investment: Gold prices have experienced a notable drop after reaching a record high recently. This decline is largely attributed to profit-taking and the softer stance on China tariffs by President Trump. Still, experts suggest that investing in gold now, despite the recent surge, can be a wise strategy for diversifying portfolios and safeguarding against economic uncertainties.
However, it is crucial for investors to evaluate their financial goals, risk tolerance, and investment horizon before proceeding.
Strategic Investment In Gold
Satish Dondapati, a Fund Manager at Kotak Mahindra AMC, recommends that investors maintain 10-15% of their investment in gold at any given time. This allocation can help reduce overall portfolio risk, protect against inflation, and provide stability during economic uncertainties.
Risks Of Investing At High Prices
Parag Shah, CEO of Kisna Diamond and Gold Jewellery, acknowledges that while gold prices are elevated, the metal retains significant cultural, emotional, and financial value. This is especially true during occasions like Akshaya Tritiya, when buying gold is considered auspicious.
For individuals with clear goals, such as future use, gifting, or wealth preservation, this remains an opportune time to invest. Those who have built a gold portfolio over the years might also find this a fitting moment to rebalance their assets, aligning with their financial goals and avoiding further liabilities.
A market correction could be impending, as international syndicates are aware of India's deep emotional connection with gold. After the recent sharp rally, a correction might be triggered by profit booking from large institutions, Shah noted. Although the long-term outlook for gold remains positive, such a correction would likely be a healthy pullback, presenting a buying opportunity rather than indicating weakness. The market is currently hedging against risks, with a noticeable disconnect between genuine consumer demand and price movement.
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