Invest Smart | Expert advice on strategies for investing in gold

Following Finance Minister Nirmala Sitharaman's Budget 2024 announcement reducing basic customs duties on gold and silver from 15% to 6%, retail investors are celebrating the significant drop in prices.

To explore this further, Avni Raja from Editorji interviews gold market expert Vijay L. Bhambwani to discuss the impact of the recent customs duty reduction on gold and its implications for investors.

ADVICE FOR GOLD INVESTORS

Vijay L. Bhambwani advises gold investors not to worry too much, as any losses are likely temporary.

Bhambwani also notes that only recent investors might be experiencing losses due to recent market fluctuations, and these should be viewed as short-term setbacks rather than long-term concerns.

WHY INCREASE ALLOCATION TO GOLD?

Speaking about the gold allocation, Bhambwani explains that investors should use market corrections as opportunities to buy more gold.

He also advises against purchasing gold on leverage, especially when buying futures, as it can increase risk. Instead, Bhambwani recommends opting for physical deliveries to ensure a more secure investment in gold.

INVESTING IN PHYSICAL GOLD

When investing in physical gold, Bhambwani emphasizes the importance of ensuring that the gold is hallmarked and stamped for authenticity and purity.

He further advises investors to purchase only hallmarked gold, which guarantees its purity. If investors have any doubts about the authenticity of their gold, they can have it tested for a nominal fee, which typically ranges from ₹50 to ₹75 per piece.

This step helps to verify the gold's quality and ensure that investors are getting what they pay for.