There was a time when gold was considered limited to weddings, or festivals. But now, the World Gold Council's new report has completely changed this perception. The report, titled "The Portfolio Continuum," states that gold has now secured a significant and permanent place in the portfolios of investors worldwide. This means that gold is no longer just a 'rainy day asset,' but a strategic and smart investment.
Gold Has Become a Business Class Asset
Earlier, gold was generally considered a means of saving or a safety net for the elderly, but its identity has now changed. International investors now consider gold on par with high-value assets such as property, infrastructure, or private equity. This means that gold is now seen as a 'business class' investment, which not only balances risk but also brings stability to the portfolio.
Why Gold's Popularity is Increasing
- Low-Risk Option: When the stock market is volatile or there is a major global crisis (such as war, recession, or inflation), gold proves to be a stable option.
- High Liquidity: Gold can be sold or bought quickly and easily compared to property or private investments.
- Currency Balance: When the dollar weakens or inflation rises, gold compensates for it.
- Environmentally and Socially Friendly: Now, ESG (Environmental, Social, and Governance) standards are being followed in gold mining, making it an ethical investment as well.
How to View Gold from an Investment Perspective
- This report presents gold as a b strategic asset. This means that instead of considering gold only as a safe haven, it should be considered an option that provides returns and balances the portfolio.
Comparison of Gold with Other Asset Classes (Pointwise TD Format)
Gold
- Return: Medium
- Risk: Low
- Liquidity: High
- Total Score: 9/10
Real Estate
- Return: High
- Risk: Medium
- Liquidity: Low
- Total Score: 7/10
Private Equity
- Return: High
- Risk: High
- Liquidity: Very Low
- Total Score: 6/10
Bonds
- Return: Low
- Risk: Low
- Liquidity: High
- Total Score: 6/10
Surge in Gold Prices and Demand
According to the report, interest rates are stable in the US, and the dollar has weakened. In addition, gold demand from China has also increased. All these global factors have also affected India. The festive season is near in the country, due to which the domestic demand for gold is also increasing. Gold purchases traditionally pick up during the wedding season.
New Ways to Invest in Gold
Now there are many modern and easy options available to invest in gold, which are more convenient than before:
- Physical Gold: Gold coins or jewelry. It has higher making charges and taxes, but it is a favorite way for common people.
- Gold ETFs or Mutual Funds: Investment in this is digital, and it is less expensive and more liquid.
- Sovereign Gold Bonds: It offers interest with a government guarantee and also has tax benefits.
- Digital Gold: Investing in gold through mobile apps has now become even easier, although it is important to pay attention to regulations.
Gold is Now a Strategic Investment Tool
The report says that today's gold is not just jewelry or savings for bad times, but now it is a strategic investment that lasts even in global economic uncertainty. Pandemic, war, recession, currency crisis – in all these situations, gold has proved itself as a reliable option.
Gold's Role in Preparing for 2025
The trend of gold is now changing all over the world. Especially looking at the economic conditions of 2025 and beyond, it is clear that investors' inclination is increasing towards gold. Options like Digital Gold, SGBs, and Gold ETFs are making it even more accessible.
A New Future of Investment is Now Visible in the Shine of Gold
Today, when the world is struggling with inflation, geopolitical tensions, and economic slowdown, gold has emerged as an option that not only protects against risk but also provides stability and trust to investors in the long run.
