Wait for a dip in prices to buy gold

CAN GO FOR SIP IN GOLD EXCHANGE TRADED FUNDS TO AVERAGE OUT COSTS & REDUCE TIMING RISK

- SAIKAT NEOGI

AS GOLD PRICES have scaled ₹1 lakh per 10 grams, individuals should stagger their buying and adopt a more cautious approach by waiting for a dip. And taking partial profits now will help them to secure some gains while maintaining exposure to future price increases.

Gold prices in the domestic market have surged 26% this year, driven by safe-haven demand amid geopolitical tensions and economic uncertainty. Prices are likely to remain elevated as investors seek a hedge against stock market volatility and easing interest rates. Even demand for the precious metal is likely to stay strong from central banks as they diversify their reserves.

Fresh investments at elevated levels should be staggered. Investors can consider using a systematic approach like systematic investment plans (SIPs) in gold exchange traded funds (ETFs) or gold mutual funds to average out costs and reduce timing risk. Individuals should avoid making large lump sum allocations when prices are at record highs.

Invest gradually