Wednesday, March 19, 2008

Kotak Gold Eternity Gold as an Investment

Kotak Gold Eternity : Gold as an Investment
Gold is the oldest currency in the world and is coveted across continents and cultures for a variety of reasons.

Maintains long term value
Market cycles have their ups and downs, but gold has maintained its long-term value. Paper currencies may rise and fall but gold always endures. Gold has demonstrated its capacity to store value for centuries
Safe refuge
During times of calamities like war or economic crisis, there may be a negative effect on investments like currencies, bonds and equities, but may have an opposite effect on the value of gold. Also gold is not a liability of any government or corporation and hence it does not run a risk of becoming worthless due to unexpected events.
Inflation Hedge
The value of gold, in terms of real goods and services that it can buy, has remained remarkably stable whereas the purchasing power of many currencies has generally declined
Helps build a robust portfolio
Adding gold to a portfolio introduces an entirely different asset class. Portfolios that contain gold are generally more robust and better able to cope with market uncertainties than those which don't. Recent independent studies have shown that traditional diversifiers (such as bonds and alternative assets) often fail during times of market stress or instability. Even a small allocation of gold has been proven to significantly improve the consistency of portfolio performance during both stable and unstable financial periods.
Effective Diversifier
Diverse investments help protect the portfolio against fluctuations in the value of any single asset class. Gold is an excellent portfolio diversifier because its performance tends to move independently of other investments and key economic factors.
Both tangible and liquid
Gold is an asset that is both tangible and liquid, unlike real estate which is tangible but not liquid, or company shares and bonds which are liquid but not tangible.

0 Comments: