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Why Systematic Investment (SIP) In Gold Makes Sense:


Few Days back,we have one post on Platinum prices when Platinum prices deepened suddenly & roll back.This post can be viewed Here: What Can Be Learned From This Platinum chart?

I think Gold is going on similar way & there is sudden deep in the prices.Number of investors have this question in the mind – should we buy Gold or not?

One can’t say where will be the bottom but as history of other commodities is concerned,alternate cycles of bullish-bearish phase have witnessed & one can expect same thing about Gold.

Systematic Investment in Gold:

  • One should understand that Gold is an international asset & its not like individual share traded at the exchange….where prices of certain shares never come up or share gets de-registered.
  • Unlike ¬†other metals or commodities,Gold prices are supported by strong domestic demand & this is the most favorable factor for Gold.
  • Each & every asset has to follow Bullish – Bearish cycle & so even if Gold prices deepened more ,it has to follow bullish trend in future.
  • Such kind of pattern i.e.Sharp deep & then recovery have experienced across all the commodities in history & we can expect same from Gold also.
  • If systematic investment works in Equity then it should work for any volatile asset.

I think it doesn’t matter much in which form individual won the Gold.It may be Physical Or Paper..its ultimately individual choice.

One may not have¬†fascination with Silver or even for Platinum But Gold should be part of the portfolio & one should think to buy Gold systematically, always…

One can not say about annual returns of Gold but Gold purchased in systematic way or value averaging way likely going to benefit the investors…

 


Category: Commodities

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Information provided on this blog is for general purpose only & not investment advice.Please take advice of SEBI Registered Investment Advisors before taking any investment decision.
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