Why Gold is Important for all Investors!

How to plot Gold Prices in INR

Calculating the price of gold in INR involves a straightforward process. Firstly, obtain the gold spot price or futures price in USD. Convert this value to INR using the USD to INR exchange rate. Then, incorporate the additional duties, typically around 15%, by multiplying the price by 1.15. Finally, divide this figure by 31.103 to convert the price from dollars per ounce to rupees per gram, considering that one ounce contains 31.103 grams of gold.

Just copy paste this in Trading View : GOLD*USDINR*1.15/31.103

Gold Price Trends Over 20 Years

Reflecting on the gold price trends over the past two decades reveals significant growth. From April 2004 to the present day, gold prices have surged from 675 to nearly 70,000 INR per 10 grams, marking an approximate tenfold increase. Despite a bear market from 2013 to 2019-20, the overall trend illustrates a compound annual growth rate (CAGR) of about 12%, showcasing steady albeit modest returns compared to other asset classes.

Comparing Gold to Equities

While equities, such as the Nifty index, have historically outperformed gold, the two serve different purposes in an investment portfolio. Gold acts as a complementary asset class, offering a hedge against currency fluctuations and geopolitical risks. Unlike equities, gold prices are influenced by global factors rather than solely the performance of the Indian economy, making it a unique addition to investment portfolios.

Diversification with Gold

The inclusion of gold in an investment strategy adds diversification and stability, especially during periods of market volatility. Unlike index investing, which may not always yield favorable results, gold provides a buffer against economic uncertainties and market downturns. Its relatively stable price movements offer investors peace of mind and mitigate portfolio volatility, particularly in times of crisis.

Balancing Risk and Returns

Investors should strike a balance between risk and returns when allocating assets. While high-risk investments like equities or cryptocurrencies offer the potential for higher returns, they also come with increased volatility. Gold and real estate, on the other hand, provide steady returns, typically beating inflation rates, and allow for larger capital allocations without excessive volatility, promoting a more balanced investment approach.

Check out the detailed video on The WeekendInvesting App

WeekendInvesting Strategy Spotlight

Mi ST ATH has completed 5 glorious years in the markets. The strategy, since it’s launch on 01 Apr 2019, has recorded a solid performance clocking 286% compared to 108% on the CNX 500 (the strategy’s benchmark)

Mi ST ATH’s CAGR at the end of 5 years since launch stands at a very healthy 31% compared to 16% on the CNX 500 index.

We would like to thank all subscribers of the strategy for their continued support and also convey our wishes for a rewarding journey in the future too.

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