Touch of Gold

Index : 2,184 | 1Yr : -16.39% | 1Mo : +5.93%

Category : Sectoral Trackers

Min Investment : 6,992

Sharpe Volatility Trend

India's obsession with gold is is beyond being a symbol of wealth and status. Gold is a part of worship and popular tradition that goes back thousands of years. Acquiring gold is a goal for people of all backgrounds. There is a saying, ' If India sneezes, the gold industry will catch a cold.' The purchase of gold is culturally ingrained and has uses like jewellery for personal use, weddings etc. Gold is also used to raise capital by pledging it as loan collateral across the country and especially in South India.

Needless to say, businesses associated with gold are directly impacted by its prices. A very high increase can temporarily subdue demand for jewellery. Since India is a net importer of gold, hike in import duty can affect its domestic demand. It has become the government's priority to unlock the value of existing holdings in Indian households. The recent initiative to dematerialize physical gold can change the structure of consumption patterns significantly in the long-run.

However, the demand is likely to grow in the foreseeable future because they are not purchased for economic benefit to begin with. Invest in healthy companies that have built solid businesses using gold as the basic commodity.

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