INSUBCONTINENT EXCLUSIVE:
Dhanteras: Gold demand has remained muted in the run up to the festive season.Gold demand has remained muted in the run up to the festive
While rupee depreciation - with the currency down around 13 per cent against the dollar year-to-date - has made imports costlier, domestic
prices quoting at multi-year highs have kept the demand in check
Going forward, demand for gold is expected to decline, say experts
Despite Dhanteras being celebrated on Monday, which usually triggers a jump in demand as retail customers make gold jewellery purchases, and
Dhanteras 2018, domestic gold prices advanced nearly 7 per cent, as against a 4 per cent loss in global gold prices.Gold demand in the
county in 2018 is expected to fall from the previous year as a rally in local prices to five-year highs is likely to dent purchases during
key festivals in the December quarter, the World Gold Council said last week.But should you buy gold despite a rise in price Here's what
experts say.Rahul Agarwal, director, Wealth Discovery:"Our advice around the time of Diwali is to accumulate small quantity of gold purely
to get some exposure in gold and to achieve diversification in one's investment portfolio We expect that the current drivers for high gold
prices such as rupee depreciation against the US dollar, geopolitical uncertainty and seasonal demand are not sustainable in the longer term
and once these factors normalise, there may be a possible correction in gold prices forms the current highs.""In periods of low interest
rate that are expected to remain low for a longer term, investment in gold can be a good idea
Similarly, if the outlook for an economy indicates inflationary trend, investment in gold makes sense
"Mr Agarwal expects the sluggish movement witnessed in gold prices in the past few months to continue, with gold likely to trade in a range
of Rs 32,000 per 10 grams to RS 33,500 per 10 grams in the short term and near term.Abhishek Bansal, founder and chairman of ABans Group of
companies:"Domestic gold prices are still at two year highs but a minor correction in the rupee from these levels may push gold prices down
This is the key reason behind investors shying away from gold which has given poor returns compared to other assets classes such as
equity.""It is therefore advisable to wait for a better correction in prices in the coming months till Rs
30,700 per 10 grams."Amit Kachroo, Managing Partner, AANEEV Wealth:"Gold prices have not given substantial returns
In fact hardly any money has been made in gold since 2013.""One can definitely invest in gold this Diwali/Dhanteras, but should not expect
better returns in these investments
If somebody is keen on investing in gold, he should take the route of gold funds or gold ETFs (exchange traded funds) as they are easy to
manage and are pretty liquid
only for the symbolic and religious value and not for investments
