Have gold investments lost their sheen?

The price of gold has remained in the range of Rs 47000- 49,000 (per 10 grams) for a long time. Has gold lost its sheen after the August 2020 high of Rs 56,000? According to Navneet Damani, VP Head Research Commodity, Motilal Oswal, there is no need to panic. Gold always returns in cycles and gold also goes through such pressure. This downward trend will be seen in the coming 1-2 quarters. Damani is confident that gold prices will increase in the year 2022 and it will give a return of 15-20%.

Navneet Damani of Motilal Oswal says that the fall in gold is giving a good opportunity to buy. Gold has always been considered a safe investment. Whenever equities race, gold turns sluggish. But consider this as an opportunity.

Gold should not be more than 5 to 10% in your portfolio. Invest in gold according to your risk appetite. A 5% share in an aggressive portfolio can be allotted to gold. A little above 7.5% can be kept in passive and moderate portfolios.