Investors worry whether they should expand their holdings of the yellow metal in 2023 as gold prices rise further. Geopolitical unrest and the pandemic have increased economic turbulence, which has driven up the price of gold. Even the Reserve Bank of India (RBI), which will acquire 10 tonnes of gold in March 2023, has decided to follow the trend.
Gold is often regarded by professionals as a dependable investment choice for your portfolio since it protects your investments from inflation and diversifies your portfolio’s assets. Many Indians would desire extra stability in light of the continued talk of a future recession and the existing uncertainty in the banking industry. It would be beneficial to think about investing in gold given the increasing trend in gold prices.
Is it Time to Buy Gold Now?
Gold is often used as a hedge against inflation, says Arijit Sen, a Merry Mind co-founder and Sebi-registered financial adviser. Depending on your investment aim, risk profile, time horizon, and macroeconomic conditions, he advises investing up to 5% to 10% of your whole investment portfolio in gold. He does, however, issue a warning that gold price volatility is common and that it’s crucial to determine if investing in gold is appropriate given your unique needs.
According to Shweta Jain, the founder of Investography, exposure to gold is widespread among Indians. However, because of lifestyle costs and other objectives, many young families do not prioritize gold. She advises investing 10 to 15 percent of your assets in gold, but to do it gradually.
Although gold has traditionally been thought of as a safe-haven asset, it is crucial to do thorough research before making an investment. Prior to investing assets to gold, it is essential to evaluate your investment aim, risk tolerance, and time horizon. Remember that gold is not a sure investment and that its price might fluctuate as well.
Before making a choice, it is critical to assess any new investments in light of your unique financial goals and current financial situation. If you’re unsure, consulting a specialist may help you choose the investments that are most suited to your requirements. According to Sen, “Investors must not get influenced by recent trends and should understand whether an investment in gold makes sense for their specific requirements.”