Are bullion markets safe for investors ?

[neerajchauhan]

The bullion reserve of a country is the indicator of the amount of wealth a country possesses. Bullion is defined as a bulk quantity of precious metals consisting of gold, silver and others that can be assessed by weight and cast as a lump.

I don't think it would be better to invest heavely in the bullion market. The next jewellery purchase will be a tad costlier, thanks to a 50% hike in customs duty on precious metals, but its not finished yet, the proposed 2% interest subvention on pre - and post-shipment that would not be extended to the gems and jewelery industry.

The cost of manufacturing will increase, as compared to other countries, thereby affecting exports. This will be a 2% increase in the cost of gems and jewelery because the sector will not get any relief on the pre - and post -shipping cost.

what are your views :SugarwareZ-300:

Thus, it is better not to invest heavely on precious metals, rather one should study the market properly & see what price the market offers the best to trade for.

 

[deepakraam]

Bullion are safe bets when the markets are tumbling.This is proved by the returns gold generated last year when compared to the returns generated by Sensex.Ideally,a well diversified portfolio should hold 20% in Gold.This will really help in hedging against the equity drop.So bullion is a safe or unsafe investment depending on huv much this comprises your protfolio.

-Deepak.

 

[jjaaii]

I feel that investments must be carefully thought over and spread to avoid risky exposure to volatility. One must decide on three or four atleast to invest in, like real estate, stocks, deposits, bullion and so on and spread his investments after familiarizing with the degree of volatility.