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Gold Price & Your Strategy – Buy, Sell or Hold

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Gold yellow sparkling metal always gives tremendous returns. Many retail investors believe in this theory. This theory was backed by fact that in last decade gold has outperformed among all other asset class, but recently gold has lost its charm. Many investment experts now believes that Gold may not yield sparkling returns, yellow metal loses glitter with dollar gaining strength.

Gold price was corrected nearly 12% recently, per 10 gram gold price was 32,000 Rs/- & now it is 26000 Rs/-.  Many gold investors are disappointed with this gold price correction, and they are in confusion state what to do next?  Whether it is buy opportunity or time to book profit, so we are herewith article about Gold Price & Your Strategy.

Buy at current Gold Price?

As gold price is down many retail investor must be thinking of buying gold at current level.

Buying gold at current level will be riskier affair. As US economy is improving we may observe adverse impact on gold price and gold price will fall further.

If your portfolio is overweight in terms of gold we recommend not to buy gold at current levels.  Buy only if your gold asset allocation is under the range of 10-15 % of the portfolio that is also via SIP route.

Time has come to book Profit?

As buying gold at current level is not recommended does it means that one should sell gold and book profit? Answer of this question is yes and no depending upon amount of your gold holding.

Financial advisor recommends keeping gold as 15 % of your total portfolio. If you are holding gold more than that yes it is good time to lighten your portfolio.  Gold may not outperform soon.

Also read: – Gold price Prospective 2014

If you are holding gold within limit of 15% you are requested to adopt HOLD strategy in Gold.

Gold may not outperform soon but in long run gold will give good return.

Before adopting any strategy related to Gold we request not to carry away by any noise which could affect your long-term financial plan. So before you listen to any advice, including ours, get in touch with your financial planner.

Shitanshu Kapadia
Shitanshu Kapadia
Hi, I am Shitanshu founder of moneyexcel.com. I am engaged in blogging & Digital Marketing for 10 years. The purpose of this blog is to share my experience, knowledge and help people in managing money. Please note that the views expressed on this Blog are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment , tax, financial advice or legal opinion. Please consult a qualified financial planner and do your own due diligence before making any investment decision.