Thursday, August 6, 2015

Has Gold Really Lost its Glitter?

Commodity experts world over have been commenting on the fall of Gold as an investment instrument. A recent article in Financial Times goes on to elaborately argue why Gold is not going to be a part of investment portfolio.
However, traditionally Gold has been used as a hedge against inflation. Does Gold still retain this position in portfolio of retail investors?
If the objective of keeping Gold in portfolio is to hedge against inflation in very long run, Gold has never disappointed. All the discussion amongst commodity experts has been Gold as a part of portfolio of Institutional investors. The long term horizon of institutional investors is very different from that of individuals. My strong view is that if investment horizon is over 10 years Gold is definitely not going to disappoint individual investor in providing an alternative non-volatile investment option.


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Vasant Vihar, New Delhi, India
A Central Banker with 22+ years of experience. Interested in latest developments in Indian Economy and Banking. Certified Trainer with 5+ years of experience in classroom training. VIEWS EXPRESSED ARE PURELY PERSONAL