Retail Chronicle Issue 6 (1 - 15 November)

The Gold Reign
By NEETI NARAIN GUPTA
We see lights and sparkle and immediately we can
think about our most beloved festival DIWALI.
Indians have quite a strong association with
highlighted things, and when we can say that a gift
you can spend on is actually an investment, we are
on board. What is the most common question every
household has on DIWALI or DHANTERAS? It’s
simple, to buy gold or silver. May be the retail
market is all up with these really jazzed up sales and
jackpot offers , online or offline, the biggest market
sharers and sweepers are hands down the ornament
industry with whooping gold and silver up on their
alley.
Gold delivered 15 per cent returns CAGR over
the past 15 years and after negative returns
for three consecutive years, gold has given
positive returns.
This year, DIWALI and DHANTERAS was quite
the golden year for traders. Somehow it all
worked out for them in the best ways. The
price was almost 5% hiked then 2015 rates but
still the footfall was quite high as compared to
other years this season.
But should investors really invest in gold? We say
“yes”. With the ongoing rally in the domestic equity
market, which is close to its all-time high level and
growth in the economy returning, will gold still be a
good investment avenue?
Over the long term, investing some part of savings
in gold always fetches good returns. At the same
time, it creates protection against erosion of
purchasing power either to the exchange rate or
inflation.
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