Posts

Showing posts from July, 2020

Gold - An Investment

Image
In the previous two blogs we saw- Gold does not necessarily out beat other asset classes.  Because of the way we "Buy" Gold , the returns further diminish.  Gold can never become an investment. It is purely an hedge,  Hedge  -  against Inflation,  against a falling equity market or  against a collapsed debt market.  So it would be naive on our part to "Invest in Gold" and expect out sized returns.    So in this blog, we would like to layout probably an easy guide on how to handle Gold as an "Asset" for layman investors.  Allocation -  Try and keep 10% of your Net worth in Gold.    Options for Investment -     1. Physical Gold (Jewellery) - If you have no gold at all then start a monthly Gold Scheme for 10% of your savings and start accumulating the same. Sometimes, you might already have Jewelry but if you prefer accumulate further gold in Physical form then continue to do this or buy as gold coins.  2. Gold ETFs - Best suited for somebody who is interest