Investors turn to gold as stock markets tank. But is gold the best asset with the best rate of returns over the last years?
Vasundhara went to a showroom to sell off the gold jewellery she had bought a few years ago. But peaking gold prices sent her back.
?When my daughter got married 13 years ago, the price of gold was around Rs 3000. Now it has shot up manifold. Since I don?t invest in mutual funds, makes sense for me to invest in gold,? said Vasundhara.
Comparing the returns from various assets, it makes sound business sense.
If you bought silver worth Rs 1 lakh in January 2010, it?s valued today at Rs 2.25 lakh, which is 125 per cent increase.
The same amount invested in gold would now be worth Rs 1,45,000, a 44 per cent increase.
Rs 1 lakh invested in an equity mutual fund a year ago will gain you just 27 per cent or Rs 1,26,000, while a fixed deposit in a bank ? assuming an average rate of 6.5 per cent ? would have yielded just Rs 1,11,692.
Last, and most telling, Rs 1 lakh invested in equity will give you a profit of under a per cent or Rs 1,00,763.
But with gold selling at Rs 24,000, is it still a good time to buy?
?When there is uncertainty people buy gold, which drives the price up so as long as this uncertainty continues. People should continue to buy gold,? said Jayant Manglik, President, Commodities, Religare.
Experts suggest investing in Gold Exchange traded funds or E-gold, rather than jewellery.
?What I consider the best way to invest in gold is e-gold, which is e-series. There is this spot market where you can buy gold even as low as 1 gm and it works exactly the same way as equity markets so you get your gold delivery in demat form within two days into your account so that is being liked a lot by investors especially those who are familier with equities. There are also gold ETFs which are very popular today and turnovers are rising, which is a sign of its success in India,? said Jayant Manglik.
Global markets are showing little signs of recovery and the eurozone debt crisis adding to the US unease. With equity returns uncertain, this could be the right time to invest in the yellow metal.
Source: http://ibnlive.in.com/news/gold-silver-top-investment-list-as-stocks-dip/174057-7.html
Tags: Gold analysis, Gold future prices, Gold futures, gold investment, Gold news, Gold price, Gold price forecast, gold prices, Silver price, silver prices
Source: http://cnbusinessnews.com/gold-silver-top-investment-list-as-stocks-dip/
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