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Gold Shines to an All-time High as the Second Wave of Pandemic haunts Investors

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With rising fear of the second wave of COVID virus and speculations over the second stage of Lockdown, Investors are moving towards the haven, i.e., Gold.

  • Gold, the most sought-after of all precious metals, is acquired throughout the world for its beauty, liquidity, investment qualities, and industrial properties. As an investment vehicle, Gold is typically viewed as a financial asset that maintains its value and purchasing power during inflationary periods.
  • Gold has a long and fascinating usage history in a diverse range of industries and applications. In each of the applications it is used, Gold provides outstanding performance due to its unique properties of being one of the most malleable and ductile metals with a high melting point and easy recyclability. Gold is a material of choice in medicine and dentistry as it is biocompatible. In recent years it has emerged as a critical nanomaterial. Global demand for Gold is centered on four primary categories: jewelry, investment, central bank reserves, and technology.
  • Risk management is of critical importance for gold value chain participants, such as mining companies, processors, companies dealing in gold and gold products, jewelers, and even governments which rely on the proceeds of bullion consumption and trade. Modern hedging techniques and strategies, including market-based risk management financial instruments, such as gold futures, can improve efficiencies and consolidate competitiveness.


Gold prices in India today hit fresh record highs, tracking higher firm global rates. On MCX, August gold futures rose 0.4% to ₹48,982 per 10 gram while silver futures were up 0.8% to ₹50,779 per kg. Domestic gold prices, which include 12.5% import duty and 3% GST, had hit a high of ₹48,825 per 10 gram in the previous session after they surged over 1%, in tandem with a rally in global markets.

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Gold futures were up 0.07 percent or Rs 32 at Rs 48,794 per 10 grams.

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Experts are of the view that the trend in global Gold and silver is likely to remain on the upside amid rising fears of COVID-19 related cases, and global recession. The yellow metal could face some resistance around 49050-49,230 levels.


With the Indian Festive season on the way and IMD forecast of a healthy monsoon, Gold may see a surge in demand in Indian markets, which may push it upwards from the 50000 marks.


Investors should consider Sovereign Gold bonds, Digital Gold, Physical Gold, Gold Funds, and Gold bees as Investment ideas to start with a meager budget.

Disclaimer:


The Content is for informational purposes only; you should not construe any such information or other material as legal, tax, investment, financial, or other advice. The Author is not a registered Advisor or a legal entity.


There are risks associated with investing in securities. Investing in stocks, bonds, exchange-traded funds, mutual funds, and money market funds involve risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves unique risks, including higher volatility and political, economic, and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.

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