Investment
₹
Gold Investment: A Solution to India's 3-Year High Inflation
Posted On Monday, Jun 16, 2008
Inflation in India soars to 8.75%, a 3 year high … and expectations are that inflation could cross 10% in a few weeks time…oh, no!
Not only does inflation make the goods and services you consume more expensive (causing a strain on your household budget/expenses), the greedy beast of inflation eats into your “real” returns.
For instance, if you are earning 8.75% on your fixed deposits, and if inflation stays at 8.75%, then what you are earning in “real” terms is ZERO.
But, if inflation zooms to 10%, you are losing -1.25% (the interest on your deposit minus the rate of inflation) by keeping your money in the fixed deposit. Your “real” rate of return is actually a “real loss”!
You would not like to see a "real loss" or negative real return on your investments.
The solution is to try and match the rapidly increasing cost of living, by investing a part of your savings/investments in gold.
Traditionally Gold has proven itself to be an effective inflation hedge.
It has been able to provide positive real returns i.e. returns higher than inflation in the long term.
Call your broker and buy Quantum Gold Fund (ETF) on the NSE (Code QGOLDHALF) or log on to your online broking website and place the order. Now!
Allocate part of your savings/investments to Quantum Gold Fund. And, watch how gold keeps the value of your hard-earned money.
ADVANTAGES OF BUYING THE QUANTUM GOLD ETF
- Low Unit Size - Buy as low as half a gram of gold.
- As good as buying Gold… in demat form... convenient.
- No Premiums / Making charges.
- No Purity concerns - You buy gold of 0.995 Purity.
- No hassles of storage.
- No Storage risk – Gold held by the fund is fully insured.
- Easy liquidity: buy and sell on the NSE.
Related Posts
-
Equity investments and Tax saving - Tick both boxes with ELSS funds
Posted On Friday, Jan 10, 2025
With domestic equity markets down from their 2024 highs, now can be an opportune time for investors to buy into one of the growing economy in the world at reasonable valuations.
Read More -
Debt Monthly View for December 2024
Posted On Tuesday, Jan 07, 2025
The year 2024 has proven to be a strong one for fixed-income investors, marked by India's inclusion in the JP Morgan GBI EM Index.
Read More -
Gold Year End Wrap-up & Outlook 2025
Posted On Monday, Dec 30, 2024
In 2024, the gold market experienced a remarkable surge, with prices increasing by approximately 29% through the year.
Read More
