Gold price today at Rs 42000; experts see it at Rs 48000; here is where you can still make money

After a temporary fall in the gold prices, the yellow metal has recovered and has been seeing an uptick in prices for the past one week, market expert Anuj Gupta of Angel Broking said recommending a strong buy for the precious metal. In Delhi, today gold was trading around Rs 42000, at the time of filing the story.

Gupta said that gold should be a viable investment option for investors amid uncertainty in the market, especially on the back of the coronavirus epidemic. He expects the gold price to cross the Rs 4500 mark by Diwali, this year. It may go as high as Rs 48000, he added.

Indian markets on Friday saw their biggest fall since the 2008 economic crisis, as Sensex plunged by over 1400 points in a single day - it regained the losses thereafter. However, Indian markets have given up the gains they had at the start of the year 2020. Taking global cues especially from a coronavirus outbreak the markets have shown a lot of volatility over the past week.

Even though gold price has shot up a lot, investors must look at it positively, especially as other investments have been endangered due to coronavirus impact.

Gupta also advised caution on investments in gold via the market route. He said that investors can buy 1 gm gold in the form of Gold Mini and Gold ETF.

Meanwhile, another Zee Business market expert Nikhil Kothari from Etica Wealth Management also recommends investment in gold.

The demand for gold has increased as a result of market upheaval. People are investing in gold and silver as a safe investment option. Gold price on the MCX has crossed Rs 41700 levels per 10 gm while that of silver has gone beyond Rs 44700 per kg. Gold price has shot up by Rs 300 while those of silver by Rs 700.

On Comex, the gold futures are hovering around $1600 per Troy Ounce while those of silver $17 per 1 ounce.

However, investment in gold does not mean buying jewelry, instead, it should be bought as a financial asset. Gold Mutual Fund and Gold ETF (Exchange Traded Funds) could be a viable option, Nikhil Kothari says.

Notably, physical gold buying is not a good investment alternative, he says.

Amid uncertainties in the market, investment in Gold and silver futures could be used as a hedge. Include gold in your investment portfolio, the expert says. Diversifying a portfolio will yield good results.  He suggests at least 5-10 pct of the investment amount in Gold.

Investment options in Gold Funds
-- Paper Gold
-- Gold ETF
-- Sovereign Gold Fund
-- Gold Mutual Fund
-- Digital Gold

Gold Mutual Fund: This is also a type of Mutual Fund, Nikhil Kothari says. Investors invest in such instruments. Fund managers keep a tab on your investments. The state of the market determines the returns. Investment in these instruments should be done as per the risk appetite.  

Gold ETF: This is the Gold Exchange, Traded Fund. The price of Gold depends upon the price of gold. Demat account required to invest in Gold ETFs. Investment can be made on a one-time basis or SIP (Systematic Investment Plan)

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Gold bonds are issued by governments. The investment period is up to 8 years. You can withdraw investments in the 5th, 6th or 7th year.  Anybody can buy this be it an individual or Hindu Undivided Family (HUF)