Gold Price Today: Ignore the rise in gold prices, follow this formula to earn big money

Gold has been in the news for quite some time now. Investment advice on financial portals, YouTube, and other social media has been related to gold. The reason for this is the returns that gold gives. Investors' interest in gold has increased due to the excellent returns. Some investors are also afraid of missing the opportunity to invest in gold. They are seeing gold prices rising continuously. But, gold is not included in their investment portfolio.

Gold's shine increases when the economic environment is uncertain

For many years, investment advisors and fund managers have been advising investors to invest a little in gold . There are many reasons for this. The biggest reason is that gold performs well in an environment of economic uncertainty and turmoil in the world. That is why gold is considered the safest means of investment. Today, many types of uncertainty are being seen in the world. This is not the first time such a situation has arisen and perhaps this will not be the last time.

Sovereign Gold Bond has been a preferred investment option

The importance of investing in gold increases in difficult situations. Investors should focus on including it in their portfolio. They should not pay much attention to the returns on gold. Investing in gold is important from the asset allocation point of view. For the last several years, Sovereign Gold Bond (SGB) was an attractive option for investing in gold. If the investment in SGB was kept till maturity, the capital gains became tax-free. Along with this, 2.5 percent interest was given annually on it.

SGB can be purchased from the stock exchange

The government has not introduced a new installment of SGB since February last year. However, there is an option to invest in previously issued installments. The question is whether it would be okay to invest in earlier installments of SGB? The answer is yes. If you want to invest in gold and you have a few years of time, then SGB is a good option. You have to maintain this investment till the maturity of SGB. SGB is listed in the stock market. It can be purchased from there.

Gold ETF is also a good option to invest in gold

Another option for investing in gold is Gold ETF. This is because its underlying asset is physical gold. Gold ETF tracks the domestic prices of gold. Another advantage of investing in it is that you do not have to worry about keeping the gold safe and its purity. Since gold ETFs are listed on stock exchanges, they can be sold anytime if needed. But, a demat account is necessary to invest in gold ETF. If you do not have a demat account, then you can invest in gold funds of mutual funds.

Also read: Gold Rate Today : Gold prices rose again today, check the rate of Friday 21 March

How much should you invest in gold?

The question is how much should you invest in gold? An investor can invest 10-15 percent in gold. He can gradually increase his investment in gold along with investing in other assets. During this time, the allocation of gold in the investment portfolio has to be taken care of. Seeing the rise in gold prices, it would be better to avoid increasing investment in gold. If the return of one asset in the investment portfolio is high, then the allocation of other assets decreases. This happens with gold as well.

Harshad Chetanwala

(The author is co-founder of Mywealthgrowth.com. The views expressed here are the author's own.)