Gold Prices at Record Highs: Should You Invest Now?
The price of gold has reached a record high, and many people are asking, “Is it the right time to buy?” Here’s what you need to know.
Why are gold prices rising?
Global issues: Wars and political unrest increase demand for gold as a safe asset.
Central banks buying: Many countries’ central banks are purchasing large amounts of gold.
US interest rates: Expectations of interest rate cuts in the US reduce the dollar’s value, making gold more attractive.
Is it safe to invest now?
Risky at peak: Since prices are at their highest, bulk investment is risky.
Invest slowly: Like SIP (Systematic Investment Plan), buy small amounts regularly to balance the cost.
Diversify: Experts suggest putting only 10–15% of your savings into gold.
Ways to invest in gold
- Digital gold: Through ETFs and gold mutual funds.
- Sovereign Gold Bonds (SGB): Government-backed, safe, and offer 2.5% annual interest.
Why experts warn caution
1. High prices may not last: Demand for gold jewellery is already falling. A price bubble could burst anytime.
2. No regular income: Unlike stocks or bonds, gold gives no dividends or interest.
3. Volatile in the short term: Prices may change quickly due to global news and policies.
4. Extra costs: Jewellery comes with GST, making resale less profitable. Storing physical gold is also costly.
Expert advice
- Don’t rush to buy gold at the peak.
- Invest gradually over time.
- Keep gold as only a small part of your investments.
- Prefer safe options like SGB or ETFs.
Conclusion: Gold is a good long-term safety asset, but experts say not to see it as a quick profit option. A balanced investment approach is best.
