Where the corona virus epidemic has caused havoc all over the world, investors also have to bear huge losses. Investor’s money is constantly being drowned not only in the equity market but also in mutual fund schemes. This year, where the stock market has broken between 35 and 36 percent, the equity scheme of Mutual Fund has also given negative returns in double-digit. In such a situation, gold has once again stood up for investors in times of crisis. Today on MCX, gold touched the level of 42785, crossing the level of 42500. Gold rises more than Rs 1300 in one day. Expert says that if you want safe investment in the present time, gold can be the best option. In 3 months it can show prices up to Rs 46 thousand.
Ajay Kedia director of Kedia Advisory said that when gold fell sharply in the last few days, yellow metal investors got scared. Gold fell from 45 thousand in the domestic market to 38000 per 10 grams in a few days. At the same time, it went down from $ 1700 to $ 1450 in the international market. But this decline was in the form of margin time. In fact, when the markets around the world were in decline and a situation like global recession became, more and more people are wanting to keep cash. The margin in gold was much increased, so people started selling. But now gold has started climbing again.
Kedia says that at the time of sleeping, gold is considered safe haven. Because gold can provide liquidity immediately if needed. The World Gold Council (WGC) has also said that gold is the best investment option in times of crisis. Gold can provide the necessary cash and liquidity in times of crisis. There is also no risk of goodwill in this. It also improves the performance of your entire portfolio.
Anuj Gupta, deputy vice president, commodity and currency, Angel Broking, says a similar situation was created during the 2008 recession. During that time there was a big fall in gold and silver. Even then, in the desire to keep cash, people had margin time in gold and silver. The way people lost their equity, they made up for it to some extent through gold and silver. But after a big fall in 2008, there was a sharp rise in gold.
Anuj Gupta says that if we talk about the current era, gold is a better investment option. There is a weakness in the rupee right now. On Monday, the rupee crossed the 76 level and went to a record low. At the same time, the demand for dollars has increased. Rupee can remain weak even further. On the other hand, investors have the best options in the form of a safe haven in times of recession. As long as there is uncertainty in equity, investment in gold will continue. In such a situation, gold is expected to continue further in the future. Kedia says that if we talk about the next 3 months, gold is seen going up to Rs 46 thousand per 10 grams.