INSUBCONTINENT EXCLUSIVE:
Sovereign Gold Bonds are government-guaranteed bonds linked to the market price of goldGold is often viewed as a hedge against inflation
What that really means is that the precious metal has for ages served as an effective tool to protect the value of money against inflation
or sudden uncertainties in the financial markets
in gold at once? That is because gold only sees dramatic price changes during uncertain times and is otherwise a slow-moving instrument,
typically more suitable for a risk-averse investor who wants to beat inflation with only slightly better returns than a fixed income
Anyone willing to take bigger risks for bigger returns can instead concentrate on equity-related instruments, they add.(Also Read: "Gold's
gold," says Ravindra Rao, VP-head commodity research at Mumbai-based Kotak Securities.Sovereign Gold Bonds are government-guaranteed bonds
linked to the market price of gold which not only give a gold-linked return, but also a fixed rate of interest
These gold bonds come with a maturity period - or lock-in period - of eight years, with a premature exit only possible after first five
are funds secured by physical gold that are traded on bourses like stocks
That is because the money parked is more liquid and more concentrated, saving on taxes, making charges that costs that you would otherwise
This is why wealth planners suggest avoiding physical gold as an investment bet.(Also Read: How To Invest In Non-Physical Gold)Gold funds,
on the other hand, invest in stocks of companies operating in gold-related services
Although their value responds to changes in the market price of gold, the two are not linked directly
long-term horizon, like 5-8 years or more, as it has a lock-in period
Agarwal, director at Delhi-based Wealth Discovery, "Those who want to trade in gold for a short-term gain should base their allocation
purely on individual risk-appetite and knowledge level..
But Record-Breaking Rally Will Slow, Says Poll)Investors who want to balance their portfolios from a longer-term perspective can buy the
recommended for an average investor, he adds, since immediate-term gold investments are subject to market volatility.Sovereign Gold Bonds
