Gold: In search of a New Reserve Currency!
Let us look at the recent Gold returns Vs. Sensex Returns. Wow...! I need GolD :D Wait, Was this performance ever like this? Let’s look at a year back (2019) and a year again (2018). Ok, Oops. It’s equivalent to Inflation Rate. 🙁 How does the same asset class give two different opinions? Gold. Gold is an alternative version of cash in a short text in the long-run potential to grow/ Decline above/below the inflation rate. Gold in the portfolio acts as a stabilizer, acts as insurance at the time of crisis like this (pandemic). I was expecting gold to cross above the crucial level of the $1900 mark, it’s now headed to cross the $2080 mark. But such momentum was quite surprised with a ~25% return since late March 2020. Around six months back, gold was trading within a range of $1400-$1500. Returns? Gold is best for hedging purposes in the portfolio, as evident by, In the past 40 years, on average, gold returns are above the inflation rate. Cool! This leads to the following question - Ho