Gold is generally regarded as a safe investment option for generations in India; along with its cultural value. Gold jewellery has been passed down from generation to generation and it carries an emotional significance for people.

Over the years, gold has become the symbol of wealth, power and status and is rooted in India’s cultural significance.

But in recent times, the rise in gold prices has raised the question of whether it is still a good investment option today.

Gold prices are generally influenced by a variety of factors, including global and domestic situations. Over the years, gold prices have followed a pattern; adjusting to the inflation in the economy.

However, recent global economic uncertainties and geopolitical tension have contributed significantly to the sudden increase in its value. Currently, gold prices have hit an all-time high

In the last 3 months, gold prices have increased by over 17%. Several factors have contributed to the increase.

The COVID-19 pandemic raised economic uncertainty in the world; increasing its demand. Recent factors like the Ukraine- Russia war, Middle East geopolitical issues and the US trade tariffs raised fear among people, leading to investors shifting their portfolio to gold investments.

The weakening of the Indian rupee against the US dollar and the fluctuating stock markets further exacerbated the issue.

This has led to the countries adding more gold to their reserves, increasing global demand.

RBI has recently added 8 tonnes of gold to its reserves, driven by the need for a safe and secure asset amid global uncertainties.

Despite the fluctuating prices, gold is still considered a safe investment option as it provides a hedge against inflation and proves to be a stable investment option in the recent uncertainties as compared to the other options.

While the current prices are volatile in the short term, experts suggest good returns in the long term. It is also a flexible investment option as gold is highly liquid, it can be bought, sold and exchanged within no time.

However, there are also some factors that are to be kept in mind. As compared to the other investment options like real estate, bonds etc, gold does not generate income or interest.

While buying jewellery, people have to pay significant amount in the name of making charges, which adds to the buying cost of gold.

If one is buying solely for investment, gold bonds or coins prove to be a better choice, ensuring good returns.

For years, people have been buying gold to meet their economic uncertainties, along with collecting it for their children.

In today’s time too, gold is seen to be a safe choice. With the recent trends in inflation and price fluctuations, gold is seen as a stable investment option.

Investors should carefully diversify their portfolios, including gold investments in jewellery, bonds or coins. While the prices may fluctuate in the short term, it will prove beneficial in the long term, as gold prices are ever increasing.

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