{"id":317941,"date":"2023-11-17T07:25:55","date_gmt":"2023-11-17T07:25:55","guid":{"rendered":"https:\/\/popularindinews.com\/?p=317941"},"modified":"2023-11-17T07:25:55","modified_gmt":"2023-11-17T07:25:55","slug":"why-should-you-go-for-gold-bonds","status":"publish","type":"post","link":"https:\/\/popularindinews.com\/celebrity\/why-should-you-go-for-gold-bonds\/","title":{"rendered":"Why Should You Go For Gold Bonds?"},"content":{"rendered":"

‘It is the best avenue for investors who would like to take long-term exposure to gold.’<\/strong><\/p>\n

The options available for purchasing gold have evolved beyond physical gold and jewellery.<\/p>\n

Now one can also buy gold in the financial form, such as gold exchange-traded funds (ETFs) and sovereign gold bonds (SGBs).<\/p>\n

Price firmness may continue<\/strong><\/p>\n

Besides ritual significance, gold is an important asset class for investment purposes. It has the ability to provide stability to portfolios when the financial markets turn volatile.<\/p>\n

Demand for gold is likely to remain high in the near future, ensuring firmness in its price.<\/p>\n

“Due to the current uncertainties and associated risks, gold prices are maintaining strong support levels between $1,930 and $1,960 per ounce.<\/p>\n

“From a technical standpoint, the projected price targets are $2,030 and $2,060,” says Joseph Thomas, head of research, at Emkay Wealth Management.<\/p>\n

Gnanasekar Thiagarajan, director-Commtrendz Research, is also bullish.<\/p>\n

“We expect gold prices to test $2,400 in the international markets (MCX: Rs 68,000 per 10 grams) due to Fed rates peaking and possible easing in the future.<\/p>\n

“Gold may gain further momentum if the uncertain geopolitical climate continues,” he says.<\/p>\n

Bars and coins<\/strong><\/p>\n

Indian households have traditionally bought and held physical gold, including coins and bars (and jewellery).<\/p>\n

Bullion is easy to sell.<\/p>\n

“Physical gold is the most preferred avenue for gold investing. However, there are issues of purity, storage costs, and lower resale value that eat into investor returns,” says Ghazal Jain, fund manager-alternative investments, Quantum Mutual Fund.<\/p>\n

<\/p>\n

The jewellery option<\/strong><\/p>\n

A lot of people are likely to purchase jewellery for themselves and for gifting. Go for hallmarked jewellery and make sure the jeweller applies a price close to current market rates.<\/p>\n

“Jewellery appreciates in value and yields a return, thanks to its underlying gold. But is it a good investment?<\/p>\n

“Purity concerns, making charges, retail markups, and lower resale values make this avenue inefficient,” says Jain.<\/p>\n

While selling jewellery one may see a dent in the realised value. Jewellers may charge a haircut as high as 10 per cent.<\/p>\n