All about investing in gold

By Morningstar |  07-07-20 | 
 

Investors flee to gold when they lose confidence in governments or financial markets. Hence it is often called a crisis commodity. A safe refuge amidst economic or geopolitical tumult.

An asset is a safe haven if it holds, or even increases, its value during periods of market and economic uncertainty and downturns. A safe-haven asset should preserve capital, withstand market volatility, and provide diversification across a portfolio.

For all those contemplating gold in their portfolio, we suggest you read these articles.

Should you invest in gold?

June 30, 2020: The run-up in the price of gold has attracted investors. Some are of the opinion that the upside is still quite significant. Others feel that it is a bit too late to jump on to the bandwagon. With the help of data, we present you with pointers to help resolve the issue.

Why gold is not a great investment

June 22, 2020: Are you buying it because it is a hedge against inflation or against currency depreciation? Or, because interest rates are falling? It could also be a great diversifier. Gold can have a place in your portfolio if you know exactly what it is for. Don’t blindly rush into it.

The psychology of investing in gold

June 22, 2020: The perception of an investor when he or she buys gold could be radically different from the frame of mind when other investments are considered. If you are considering buying gold, ask yourself what the narrative is that is framing your point of reference. Here are some questions to help you arrive at a logical decision.

What impacts the price of gold?

May 27, 2020: Gold prices get impacted by interest rates. In the short term, gold prices tend to move based on investment demand, more so than any other end market. But when it comes to gold as an investment, today's demand is tomorrow's supply. Kristoffer Inton, director of equity research, basic materials, for Morningstar, shares his views.

How Indians can invest in gold mining stocks

May 26, 2020: DSP World Gold Fund is a feeder fund, that feeds into BlackRock Global Funds - World Gold Fund. The fund predominantly invests in gold mining stocks, with a small exposure to silver, platinum, copper, nickel and diamond stocks. These mining companies are listed across Canada, U.S., Australia and the U.K. Morningstar analyst and associate director Peter Brunt did a detailed analysis, the observations of which are mentioned here.

Why investing in gold mining stocks is not easy

May 21, 2020: Investing in gold mining stocks is fraught with uncertainty. there are multiple factors that tend to play havoc with the stock price; much more than what regular businesses face. But if you possess the stomach for a rocky ride and the fortitude to break away from the herd, it could be a rewarding investment.

Will the price of gold continue to rise?

February 13, 2020: Investment-driven buyers, especially through exchange-traded funds, can quickly sell when real interest rates rise. ETF-held gold has reached record levels equivalent to roughly a year's worth of mine production, and its unwinding would significantly weigh on prices. Furthermore, the vacuum left by declining investment demand won't be filled by other categories. A combination of government initiatives and shifting preferences is driving slower growth in jewellery demand in China and India, the two largest markets, despite rising incomes.

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