Should you buy gold now?

It is a good time to start investing, believe experts. Indian gold rates follow global trends which have recently seen a dip in numbers. Nishit Nanda, CEO, Youlry.com, however believes it is all a part of the market dynamics that keep shifting. “Gold futures look strong — given the current drop in gold rates and the beginning of the festive season upon us, gold jewellery would be a strong contender when it comes to solid assets, especially for those who are younger,” says Nanda.

Physical gold jewellery, as per Sameer Nanda, CEO-merchandising, KD Gold and Diamonds, is a great gifting option for Raksha Bandhan not only because it is traditional but also because it is versatile, and its value increases over time, ensuring protection against inflation for your loved ones. “Dainty gold pendants, earrings or bracelets in contemporary designs, will be loved by the sisters,” says Sameer Nanda. If unsure of your sister's choice, he adds, then gold coins are also a great option.

Those looking to invest in digital gold, may look at systematic investment in the yellow metal. “Given the tremendous macroeconomic uncertainties that plague the future, it would be better,” says Mehta of Quantum AMC, “to allocate to portfolio diversifiers like gold and use the current consolidation in gold by accumulating systematically to build one’s allocation.”

“Gold should prove a better allocation if inflation persists, geopolitical tensions escalate, or if broad-based slowdown manifests leading central banks to resort to their usual policy response of adding liquidity and cutting rates, thereby effectively be geared to reduce portfolio volatility,” adds Pathak.

Apart from physical or digital gold, bluechip stocks and SIP in mutual funds make for great beginner-level investment avenues when it comes to gifting something utilitarian and lifelong to your loved ones this Rakhi, says Nanda of Youlry.com.

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Should you gift gold jewellery this Raksha Bandhan?