You shouldn't make a long-term investment in gold because I think it's a store of value, but not an appreciation of capital or productive capital. Instead, you should consider investing in a Gold IRA broker, which can provide you with a predictable return on your investment. When you invest in stocks, you acquire proportional ownership and are entitled to the benefit provided by this in the form of profits or dividends. When you invest in gold, it stays there. It is not a productive asset.
Therefore, in general, long-term investment is avoidable. In this case, you regularly invest a fixed amount in digital gold. Investing through the SIP is a convenient option for people who do not have a demo account, necessary to invest in gold ETFs. A SIP in gold is also more affordable because the investor can deposit a fixed amount each month according to their convenience and budget.
Investing in gold through the SIP will allow you to buy gold and accumulate your wealth on a consistent basis. This negative correlation makes gold an excellent hedging instrument for investors, since the asset classes of gold and stocks are negatively correlated. Agarwal suggests that retail investors should maintain exposure to gold that constitutes at least 5 to 10 percent of their investment portfolio. Therefore, investors with inadequate exposure to gold can invest in gold, preferably through SIP in gold funds.
In the event of a strong correction in gold prices, investors can invest a lump sum in gold funds based on their asset allocation strategy. This will average your investment cost and also adjust your asset mix. Tapse believes that, when it comes to gold as an investment product, investors should consider investing between 20 and 25 percent of the investable surplus in long-term SGB bonds and in GOLD ETFs for the short and medium term trading perspective. However, it is now possible to buy or invest in gold digitally through Gold Mutual Funds and a gold exchange-traded fund (ETF).
But I believe that the best form of gold ownership is sovereign gold bonds (SGB), which are available to Indian investors.