A highly prized and precious metal for centuries, gold has retained its appeal in the realm of investments. The demand for e-gold has enhanced in the last few years as the precious yellow metal has demonstrated its potential for long-term appreciation. The ideal time to buy digital gold is when prices are dropping.
Spot Gold prices fell by around 0.8% due to rise in US bond yields, strength in US dollar index and upbeat economic data from the US. It touched a week’s low of $2014/oz last week. The drop in the yellow metal price was limited by the ongoing geo-political tensions in the Middle East.
Sudden Fall in Gold Prices! Reasons To Invest In E-Gold Now
- Benefit of Diversification
A primary principle of investment strategy is diversification. Traditional assets like bonds and stocks are subject to market fluctuations but gold has a negative or lower correlation when compared to traditional assets. E-gold investors will have a well-diversified portfolio with gold acting as a stabilizing force. With gold prices falling, it is the ideal time for investors to enhance diversification and reduce overall portfolio risk.
- Desirable Price Point
Investing money when prices are low and selling when prices are high is a tactful investment strategy. MCX Gold dropped by about 0.4% last week and hit a week’s low of around ₹62100 per 10 gm due to weakness in overseas gold markets. The decline in gold prices offered a suitable entry point for investors interested in digital gold buy and sell.
- Acts as an Inflation Hedge
Inflation impacts the purchasing power of currencies directly. When inflation is on the cards, investors want to keep their wealth protected from its corrosive effects. Gold acts as a hedge against inflation. Buying e-gold when prices are low is a wise strategic move for investors willing to keep their portfolio safeguarded from the effects of inflation.
myDigiGold, by Senco Gold & Diamonds, is a widely preferred digital platform for E-gold transactions where you can buy and redeem digital gold at the best price. You can visit sencogoldanddiamonds.com or any of our 150+ Senco stores to redeem the accumulated gold according to your convenience.
Disclaimer: The data provided on this blog is for general informational purposes only. The data is based on our research and understanding, and we cannot guarantee its accuracy or reliability.