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
To ask direct investing questions tweet to us on twitter or contact us at email@example.com
This blog article has not been reviewed by the MAS. It is prepared solely for information purposes and does not constitute an offer or solicitation for the purchase or sale of units in the funds. This does not constitute any form of investment advice and Kristal Advisors (SG) Pte Ltd does not take into account your personal investment objectives, specific investment goals, specific needs, or financial situation and makes no representation and assumes no liability to the accuracy or completeness of the information provided here. The information and publications are not intended to be and do not constitute financial advice, investment advice, trading advice or any other advice or recommendation of any sort offered or endorsed by Kristal Advisors (SG) Pte Ltd.
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