Gold scores during inflationary times

As inflation surges across the world, including in India, gold continues to be a safe haven for investment. It has historically acted as a hedge against inflation. However, its importance cannot be overstated in an environment when bonds and stocks are slowly starting to move in the same direction.

Hence, bonds, which were considered to cushion stock market falls, may not necessarily soften the blow. The two asset classes have lately started to move in the same direction making gold an even more important source of diversification in an investor’s portfolio.

Moneycontrol journalists were not involved in the creation of the article.

 

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