With gold prices skyrocketing past the 24-carat 10 grams of gold this week, investors were wondering whether they should continue to hold their yellow metal as their assets serve as cushions against inflation, or whether they should sell their gold holdings to make the most of their bull run and make the most of their profits.
The price of 24 carat gold is hovering around the 98,500 mark, while the metal is bulliing at the level of Rs 99,000, while gold investors are tackling excitement and anxiety. Traditional Indian wisdom considers gold as an asset related to security and status, but practical investors can think otherwise, as prices touch on the highest ever.
Hold or sell gold – experts suggest that the answer to this question is essentially the investor’s goal. Yellow metal serves the intended purpose of those investing in gold as a hedge against currency depreciation and inflation. The current meeting of gold prices reflects global economic uncertainty, interest rate fluctuations and geopolitical tensions. And since these factors seem to stay here, the price of gold could touch again and exceed Rs 1 lakh per 10 grams.
Speaking about the returns of precious metals and the levels expected in the near future, Deveya Gaglani, Senior Research Analyst Product at Axis Securities, said, “This year we have provided exceptional returns. Mark, we tend to book profits at that level. So it could serve as a strong resistance in the short term, but if prices exceed this mark, we are expected to rise from Rs 1,03,000 to Rs 1,05,000.
He says household buyers can safely hold valuable metals and expect new highs in the long run. “Most families have held gold for several years, and only buy and hold precious metals. Also, investors who try to maintain gold for asset allocation and portfolio diversification can continue to hold it.” However, he warns of the very high probability of price corrections from current levels, advises investors that they can reserve profits by selling 30% to 40% of holdings and re-entering when there is a price correction.
Gaglani adds that short-term investors looking to make money from their investments in gold can track the outage losses as gold prices can expand their new highs. “The price has been slightly revised and bounced back again. The MCX contract low on Wednesday is around Rs 95,000. So if someone holds gold from Rs 90,000 or Rs 85,000, it could be a trailing stop loss.”
Experts say the wisest path seems to avoid the “all or nothing” decision. Minemi CFO Siddharth Jain said, “While gold is tempted by many to sell because it is at the highest level ever, most people may be wise to keep Goll’s queues unless there is an urgent financial need. Impossible. And a practical approach is to write profits on some of the gold holdings, while maintaining some exposure. Saurav, co-founder of online investment platform Jiraaf Ghosh said: “Gold is the highest ever this week, and has tripled its value over the last five years, and as we’ve seen it historically, historically, retardation needs historical returns if it’s not historically dependent on it. For others, continuing a certain part for hedging is especially the case as most other assets face volatility, especially given the uncertainty of the financial environment.”
