Thinking To Invest In Gold: This Can Be The Safest And Simplest Way-Know All About The Option

After phenomenal gains in the previous year i.e. 2020 owing to lot of uncertainties in the world to the tune of 28% from gold, you may expect gains to come in, yes you are right, analysts also expect the precious yellow metal to reap in good return this year too but probably not of the same scale as last year's.

And other than the gains, there is one more reason that you may be pushed to invest in the yellow metal at this point in time, as global central banks are resorting to push liquidity and with there is a threat of inflation. And to beat this inflation risk, gold serves as a good hedge. Of late amid easing of US inflation, there was seen some softness in gold.

So, now it has been over 5 years time, since the government has been promoting financial investment into gold with the introduction of Sovereign gold bonds or SGBs, there is another investment option in gold i.e. Gold ETFs is gaining interest among investors. And after a precise offloading from the investment option, again in the January month, there has been seen record inflows into Gold ETFs as per the data by AMFI. During this time there was correction seen in gold prices, which anticipating better returns, entered into the precious metal.

Gold functions as a strategic asset in an investor's portfolio, given its ability to act as an effective diversifier, and alleviate losses during tough market conditions and economic downturns. This is where it draws its safe-haven appeal, as has been evident since 2019, said Morning Star's Srivastava.

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