Biggest Fall in Gold Price
Yesterday,
India has witnessed a biggest single-day fall in gold prices in 2014. The gold
price has gone down up to Rs 800. The price has fallen after RBI eased import
restrictions of gold. RBI had imposed severe restrictions on gold imports to
reduce current account deficit (CAD) and control the sliding rupee in July last
year.
In Mumbai,
the gold price has dipped to Rs 27,840 per 10 gram. In world market, since last
year the gold prices also has declined around 35% from 2000$ to 1300$. In
India, due to weak rupee and import restriction the falling effect was not so
intense. It may further go down till Rs 25,000 – Rs 26,000 level in near term
if rupee get strong in next couple of months.
I have
always written in my past articles that never over invest in this asset class.
I still advise that do not invest more than 15% of your saving in the gold. In
our Indian tradition, the gold needed in various auspicious occasion like
birth, marriage etc. Only purchase as much gold as you required for those
occasions and the rest of saving invest in equity and debt according to your
financial requirement. My final word is on gold investment to stay away from it
and keep investing in other asset classes.
If you want more information
regarding investment or you have any other query about investment feel free to
ask us.
Warm regards,
Arvind Trivedi
Certified
Financial Planner
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