Dear Readers,
Gold is considered as a Investment bet as a hedge against inflation & is recognized international currency and currently Dollar is the most recognized Paper Currency. So generally people value gold in terms of Dollar and not in Rupee. Now if you go back in the history & make some conclusions, in the year 1975-78, gold had a dream bull run. It moved from from $100 per ounce in 1976 to around$900 in 1980, it had gone as high as $1450 per ounce in January, 2011. Between the years of 1980 to 2000 it almost stablised as Equity markets started performing quite well & people poured their investments in equities
Once the war was over and inflation eased out, Gold came crashing down. In the year 1990, gold prices came to $400 per ounce and in the year 2000, it was close to $250 per ounce. That means the effect of bubble was so big that even in 20 years, the gold could not recover its original price and was languishing at less than 1/3 of its peak price. So please don’t be surprised if you will be able to buy gold again at levels of Rs 10000-12000.
In the past 10 years, Gold has given a CAGR return of 18% per annum or making your Investments 5 times in 10 years, if you dont believe , Gold was at $250 per ounce & around 1300 at 2010 year end.
As a true financial doctor, I have provided you with true data of Gold from history from 1976 to 2010, its upto you to take a call whether one should invest in this precious metal or not.
Wealth Bazaar Financial Managers Founder, Mr. Mayank Gupta feels as a investor one should have atleast 15% of assest allocation of gold in his/her portfolio to protect it from bad economic times
Regards
Mayank Gupta