Is it time to add Gold to your Portfolio?

On April 10th Gold Prices hit record high of $2338.47 per troy ounce ,Rs 71,438 per 10 grams

The current year 2024 (CY24) so far has been an excellent year for? the precious metals?delivering 13% returns when compared? to? 8.6% for S&P 500 and 4.65% for Nifty Outperforming both Developed and Emerging Markets.

What is the reason for skyrocketing gold prices?

1. The primary reason for the prices of gold skyrocketing currently, is due to the massive amounts of gold that global central banks are buying right now.?

2. This is due to the worsening geopolitical situation in the Middle East, the Russia-Ukraine war and the impending uncertainty of the US Presidential elections

3.Gold also moves in an opposite direction to the US dollar, the reason being due to the fact that the metal is dollar-denominated, which makes it a hedge against inflation.

4. China is at the epicenter of this purchasing storm, as China’s central bank just procured gold for its reserves for the 17th straight month, in March. The main reason for doing this is because China is trying to reduce its reliance on the dollar as part of their foreign reserves and their dollar holdings have already dropped by 1/3 since 2011.Due to severe sanctions imposed by the US on China because of the Russia-Ukraine war, it is imperative for them to end their dependance on the dollar.

?5. Globally, other countries are following suit- This could be the start of a tectonic shift in global power centres, with the East starting to eclipse the traditional dominance of the West.

6. This being said the World Gold Council expect central banks of countries to continue upping their spending on gold in the coming years.?

Gold: A Hedge Against Inflation

Gold is often seen as a hedge against inflation. Since it's priced in US dollars, a weakening dollar strengthens gold's relative value. This makes it an attractive option when inflation is a concern.

The Future of Gold: A Long-Term Play

While the uptrend seems undeniable, experts advise caution in the short term. Chasing quick gains might not be the wisest strategy. However, for long-term investors, particularly those who value physical gold's tangible nature and scarcity, this presents a strong opportunity.

Why We Believe in Physical Gold:

We firmly believe that physical gold holds immense value as a long-term investment. Unlike digital holdings, physical gold provides a sense of security and ownership. Its finite quantity ensures its value remains strong.

Investing in Your Future:

For retail investors seeking to participate in this golden opportunity, a long-term perspective is crucial. Consider your investment goals and risk tolerance before entering the market. Explore various options for acquiring physical gold, ensuring its safekeeping.

Conclusion:

Gold's price surge is a sign of its enduring value. While short-term fluctuations might occur, central bank buying, geopolitical tensions, and inflation concerns all point towards a strong future for the precious metal. By understanding the driving forces and adopting a long-term approach, retail investors can benefit from this golden opportunity. Although, the uptrend in gold seems to be intact in the longer term, in the short term chasing performance is not prudent.