Opinions2 Mins Read
Gold is Still Shining
Even though gold has risen in prices due to recession, we have a reason to believe that it is still a better alternative to park cash even at current prices. Here is why we think so:
There is a liquidity crunch in the economy. To resolve this, the govt. will be expected to inject funds into the system. Also, know as QE (Quantitative Easing). It’s a mechanism by which the central bank buys bonds in the market and hence supplies the market with cash.
QE has been the go-to tool for Central banks all over the world. While giving out free money to people may sound novel, it has its economic consequences. Every increased rupee of QE raises the chances of future inflation as money supply increases and each rupee might be worth a little less. When rupee is losing its value, gold is a good hedge. It has historically proven to be the go-to safe-haven asset for investors.
Another fallout will be that Rupee will lose value against the dollar. No wonder many investors are moving money to USD denominated assets.
So in case you are wondering where to park money, gold is a good option. With shops closed, it’s better to buy gold ETF – it is safe to buy and safe to sell right now. We have a couple on our platform, go ahead have a look.
Take care & thanks for reading
-Advisory Team, Kristal.AI
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The materials and data contained herein are for information only and shall in no event be construed as an offer to purchase or sell or the solicitation of an offer to purchase or sell any securities in any jurisdiction. Kristal Advisors does not make any representation, undertaking, warranty or guarantee as to the update, completeness, correctness, reliability or accuracy of the materials and data herein. All opinions, forecasts or estimation expressed herein are subject to change without prior notice. Kristal Advisors and its affiliates accept no liability or responsibility whatsoever for any direct or consequential loss and/or damages arising out of or in relation to any use of opinions, forecasts, materials and data contained herein or otherwise arising in connection therewith.
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