Gold has proved your grandmother right

If you listened to your grandmother and bought gold on Akshay Tritia, then your investment would have earned beautiful returns. Increasing geo -political stress and comprehensive economic uncertainty have increased gold prices by about Rs 10,000 per gram. Gold purchased on this auspicious day has given double digits returns in the last 25 years.
A large part of these returns is responsible for a dramatic increase in gold prices in the last four years. In April 2021, gold prices have doubled by Rs 47,452 per 10 grams, which has now increased to Rs 98,955. Since 2021, there have been more than 20 percent returns in investment in yellow metal. The equity funds have given more than what has been given by equity funds in the last four years.
However, although gold prices have shifted beyond cleverly, yellow metal has also seen an extended period of silent returns. Between 2014 and 2018, the annual return from gold was less than 2 percent. Gold 4.8 percent of the annual consumer during that period could not even defeat inflation.
Many financial advisors consider Gold as a dead investment that does not generate any income or pay dividends. While this is somewhat correct, gold is an excellent diversification tool as its price is not associated with other asset classes. During the geo -political crisis or a period of high inflation, equity does poorly. But these conditions are good for sleeping. Negative correlation reduces portfolio risk.Gold is also a very liquid property and can be purchased and sold in global markets.
Experts estimate another reverse in 2025. Geophysical tension has only increased, and the new living in the White House has triggered tariff war around the world.
Nevertheless, do not see gold as a speculative condition. Rather, consider it as a money conservation tool and portfolio variator. Experts recommend that investors should not keep more than 15-20 percent of their overall portfolio in yellow metal.
With 1 lakh rupees per 10 grams of gold, many investors must be thinking about booking profits. With the removal of index benefits in 2023, the benefits from sleeping are now added to investor income and tax is levied at normal rates.
But sovereign gold bonds (SGB) provide a unique tax benefit to investors. SGBs are released by RBI, and their prices are linked to the price of gold. Investors get 2.5 percent interest every year, which is completely taxable. But if the SGB is held until maturity, then capital benefits from investment are tax-free.