What is the RISK of investing in GOLD at this moment?
25 th April 2025 What is the RISK of investing in GOLD at this moment? Dear Investors, Namaste! From 2006 to 2025 – I have played a full gold cycle from Rs.8000 per 10 grams to Rs.1 lakh per 10 grams now. While point to point movement may look 12X – the journey of the gold price was never smooth. Today I will take 100 years of Gold price data and try to see the RISK for the NORMAL investors who are more than eager to buy gold. Last 100 years price movements: - In 1925 – the gold was costing Rs.18.75 per gram. It is now Rs. 1 lakh. Around 9% CAGR return. The problem with the India prices is – they consist of 3 factors – International Gold Prices + Gold Import Duty + Rupee Depreciation against the USD. So, the gold prices look smoother. But when you look at the prices in USD we get a different picture. From 1929 to 1971 – the US was following the GOLD standard so the Gold prices were linked to the DOLLAR. So, there is no point in considering the GOLD price da...