Understanding the true value of Gold

Unlike earlier days where Gold was looked upon only for traditional purpose today we have wide option available in the market for investment purpose. With the increasing popularly it becomes equally important for the investor to know the factors determining gold value. Financial advisor Mehrab Irani tries to examine these factors.

December 02, 2011 / 20:36 IST

Gold has been one of the most favorite investment option for an Indian as we are the largest consumer of Gold in the world. Besides the traditional options like purchasing jewelry or investing in gold bars and coins, there are a plethora of new options available like the National Spot Exchange, Gold ETFs and also Gold Fund of Funds. Now, whether we purchase Gold through the physical option way or through mutual funds, it is of paramount importance to first assess what are the drivers of the price of Gold and how to value it. This article tries to examine and answer these important questions.

Investments are very difficult for most of us to theoretically understand, practically apply and emotionally stick to as to what asset allocation should we follow (stocks, bonds, real estate, commodities etc) or what time frame to adhere to and what are the risks attached to it. But there is one thing which most of us, particularly Indians, love and also believe that they understand

first published: Dec 2, 2011 06:59 pm

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