Should I buy Gold for a 1 year horizon ?



Hi Fpguru,


Gold is really looking good to invest!

Can you please advice on Gold investment for a period of next one year?








Dear Raj,


We thank you for visiting our website & asking us a question! Regarding your query, Gold is rising due to uncertainty in world market with regards to the Global economy especially in USA & Europe. This uncertainty is expected for sometime more maybe a year, so gold has an opportunity to rise.


However the rise in gold in last 3 years has been meteoric, so the sustainability of this looks difficult. Keeping in mind this, you can buy gold but only if you can track it regularly. You may keep a stop loss at lower levels. Gains will come in the coming year only, beyond that once world markets stabilise you may see a big fall.


Keep in mind as long as uncertainty remains in world markets, gold will rise.


You may opt for paper gold as storage cost is absent there. Also there are some tax advantages to it too.


Most importantly, do keep your financial goals in mind before any investment. If you need funds in the next one year, you should not look to invest in equity or gold, but should keep your funds in debt & liquid avenues. If you invest in instruments according to your time horizon you will never face uncertainty!


Hope that solves your query!





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