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Friday, 2 May 2014

KNOW HOW MUCH YOU SHOULD INVEST IN GOLD THIS AKSHAYA TRITIYA




Don't spend too much on gold this Akshaya Tritiya, say investment experts 
: The average Indian doesn't really need an excuse to buy gold but making it an auspicious ritual gives the act a certain moral sanction, if such a thing was indeed needed. That's why the faithful will be lining up happily to pick up the odd coin or two this Akshaya Tritiya, which falls on Friday.

But stick to that limit and don't splash out too much on the yellow stuff is the rather sobering advice given by investment experts. That's in sharp contrast with what gold fans have been told .in past years when returns on the yellow metal outstripped various other asset classes. Financial experts used to suggest people to buy more gold than what was dictated by their beliefs through exchange-traded funds (ETFs) and mutual fund savings plans to get better returns.

But the shine seems to have dulled, given the current state of the market.

"Since Akshaya Tritiya is an auspicious occasion, people can consider making some gold purchases. (But) I won't recommend  investing in gold at the moment," said Priti Gupta, executive director, commodities and currencies, Anand Rathi Financial Services. She expects gold prices to hover around Rs 29,000-29,500 per 10 gm in the next two months, down from a high of Rs 31,000 in March. That's in contrast with returns from a year ago. Gold that was bought on Akshaya Tritiya last year has appreciated 11.73%. 



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