The charm of gold is everlasting. Right from the mythological age to the present time, owning a good amount of gold is considered as a mark of achievement. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

Gold loses its value only to a certain extent, but it gives good returns in the time of financial meltdown.

When markets suffer, as happened during the coronavirus pandemic, gold shines and trades at a higher price.

But when seen as an investment option, comparisons are drawn between gold and other forms of investments, including equities, to know which of the options has given better returns?

Anil Singhvi, Zee Business Managing Editor, says that notwithstanding its past performance, the gold price has increased at the same pace as the equity market and one must have gold in their portfolio in current times.

"If we look at the research of the past 45 years, BSE Sensex has soared by 725 times and gold has risen by 68 times. But gold has fast bridged this gap in the last 20 years. The 20-year research shows that Sensex and gold have risen at the same rate. Since, gold's long-term average is the same as that of the equity market, you must have gold in your portfolio."

Singhvi says the increased growth in gold rates in the last two decades also shows growing investor interest in the yellow metal.

He, however, says the major credit of this growth goes to the fact that gold can be purchased also in the electronic form such as sovereign gold bonds (SGBs) and ETFs.

"There was a time when owning gold meant owning jewellery or biscuits. But now with the ease of holding it in electronic form, more investors are attracted to the metal. New gold investment options such as SGBs and ETFs are increasing the relevance of yellow metal in India," says Singhvi.