No matter how old you are, which salary class you belong, which profession you are involved in, which investment criteria you are familiar to, you will always lure to the glitters of the gold. Gold has always been lucrative to the investor’s portfolio as the Indian families have always been in favor of adding the precious metal into the total assets either a Hindu Undivided Family or a nuclear family. The potential investors should channelize their surplus funds into the yellow metal on this auspicious occasion of Akshaya Tritya to buy gold as per Hindu methodology in India, falling on May 07, 2019. The specific day is believed to come along with good luck and success as the day is free from any malefic effect and doesn’t require any Muhurata to initiate any new venture. So the Indian investors must capitalize the opportunity to bring the gold to your portfolio this festive season.
Here are the reasons, which will empower your investment in gold:
- Expectation of reduction in U.S. interest rates: Gold has not been a keen payer of returns to their holders over the past three years as the U.S. economy has been stabled and the Federal Reserve didn’t find any room to cut the interest rates. The current state of the interest rates have reached to a point where Federal Reserve is left with no room for further hikes, which makes it a good bet to place in the portfolio.
- Negative Correlation with the assets: An efficient portfolio comes up with a basket of varied assets which should not be evaporated in times of Systematic risk. Gold has always been negatively correlated with the equities as the former is considered as a ‘safe heaven’ in times when equity markets go through turbulences.
- Rupee will continue to depreciate: The odds of further appreciation in the domestic currency are very low as it will bounce back from lower levels and continue to depreciate further which is making the domestic gold a good bet to find place in an investor’s portfolio.
- Double Digit volume growth in retail sales: Indian Bullions and Jewellers association is expecting a 15-20% growth in retail sales this Akshaya Tritya as voting would be over in majority of the places and salaried class will have deeper pockets in the beginning of the month.