Invest in Financial market

Every time there is surplus cash, we are thinking of returns using that idle money. It is wise to approach using cost/benefit analysis. But typical people always think about their liability. This comes first before other modes of multiplying it.
Every person should have exposure to financial markets. If the principal do not decline then one should think of depositing it with Banks & Financial institutions. They are in turn regulated by our Central bank Reserve Bank of India (RBI).They are offering guaranteed returns. These guaranteed returns shifts to the next level by age of the applicant. Yes, for Senior citizens there is increased return.

Gold Price Vs Indian Economy

The main reason for the Gold prices are inching higher is huge demand. This has resulted to import huge Gold, since our production is not covering the demand. Gold is measured in US Dollars. Hence weakening of Indian rupees against US Dollars is also contributing. Great economists and our Central Bank should think to strengthen our currency. That is a big process by itself.

Gold prices are inching higher in developing nation like India. The prominent reason for the demand is people belief in holding that precious yellow metal. Another reason is the Government disability to bring down the demand whereby prices are impacted directly. Recently, Government has imposed additional import duty to increase the price wherein it thought the demand would fall. We all are pushed to think the inability of Government.

There is some additional weight to nation’s inflation. Government is repeatedly failing to curtail the inflation. This inflation is mainly due to consumer spending. The Reserve Bank of India (RBI) is not decreasing interest rate considering the same consumer spending. If it decreases the interest rates, people will have surplus cash in hand, which they will spend by hiking the inflation. By arresting inflation will increase the real value of money whereby exchange rates are improved. Only by improving the exchange rates, Gold prices will fall.

Investment in Gold is accounting for a small portion. Gold has been bought as a prestigious metal is also prevailing in India. This constitute bigger portion in buying the Gold. If there is a shift then the demand will fall. If the demand falls automatically the price will fall. So it is belief that needs to be addressed now. Huge amount of Gold is still transferred to bridegroom’s family as customary habit during wedding.  Instead having Gold as a secured asset, people should think of other secured assets. Why should they think like this? In broader perspective this thinking will reduce the nation to import it.

Government has taken attractive steps to boost the investment in Gold rather than holding it. Introduction of various Gold ETF schemes are one among them. Every common man who is holding Demat and trading account can participate without providing security. Yes, all these ETF schemes require the account to be credited than physically holding it. If this precious yellow metal is physically held, then it required to be secured. So the charges associated with the security of Gold are not there if it is bought by Gold ETF. To conclude, everybody should have Demat account to hold Gold ETF.