Emergence of Gold as an Attractive Investment Opportunity and as a Hedge Tool in Investment Portfolio

Author : Suresh Mittal and Mohan Thakral

Abstract

Gold, the most famous of all precious metals, is widely sought after throughout the world for both its investment qualities and industrial properties. Indeed, gold traditionally has served three functions: as a monetary instrument, as a financial asset, and as a raw material primarily used in jewelry and decorative objects. As an investment, gold typically is viewed as a financial asset that will maintain its value during times of political, social, or economic distress. As such, gold can provide individual and institutional investors alike with a portfolio safety net against sharp downward spikes in complementary assets such as stocks and bonds. While investment demand is important, the largest use for gold is in jewelry.

Keywords: Gold, Investment