Which way is best to invest in gold

 As the value of gold reaches its peak, here's a look at the strategies investors should follow

Invest in gold

 

Is it the right time to buy gold in India

Last year, the price of gold was on the rise due to factors including the international environment. In the meantime, the rise in gold continues this year. Last year, gold is considered to have yielded 27 percent.

Continuing this trend, it rose by 7 percent on a monthly basis in January. Although the rise in the price of gold jewelry worries people, gold is attractive for investment purposes. In this context, the approach that investors should follow regarding gold becomes important.

Is it a good idea to invest in gold right now

Gold is generally considered a hedge against risks including inflation and international crises. In the current environment, the uncertainty of economic and international geopolitics is considered to be the reason for the rise in the price of gold.

The aggressive policies being pursued by US President Donald Trump to support the country's economy after taking office are also strengthening this. If other countries also engage in an import tariff war following the US import tariff policy, it will have an impact on inflation.

Another reason is the possibility of the US Federal Reserve cutting interest rates. Past data suggests that gold performs well once the US interest rate cycle begins.

In addition, central banks of many countries are also showing interest in buying gold. Investment in international gold ETFs is also increasing. In this context, the investment approach related to gold becomes important.

Investment expansion

With the value of gold expected to continue to rise, investors can ensure that their investment portfolio has an allocation of ten to fifteen percent in gold. When it comes to buying gold, it is said that buying it at times when the price decreases slightly will be a good strategy.

Buying in small amounts gradually is also considered beneficial in the long term. Gold is also considered to strengthen the expansion of the investment portfolio. It is also considered that having more than 20 percent of the investment portfolio in gold is not suitable.

In terms of ways to buy gold, investing in the form of gold funds or gold ETFs is considered suitable. Gold savings bonds are also a good way.

However, with the new issuance of gold bonds on hold, it would be a good idea to consider buying gold bonds in the secondary market. It is important to note that, like gold, another precious metal, silver, has also performed well last year.

The increasing demand for silver for industrial use is one of the reasons for the price increase.