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Want to take advantage of the gold price rally? Follow this strategy

While other asset classes are feeling the heat due to Covid-19, gold is the flavour of the season.

By Sanket Dhanorkar, ET Bureau |Updated: June 29, 2020, 05.06PM IST
The year 2020 has shown how one good year can wipe out a history of poor returns. Just a year ago, the returns from gold looked anything but shiny. The five-year annualised return was 4% and seven-year returns was a measly 1.5%. But gold has made a dramatic comeback in the past few months. Gold prices have shot up
an investor can purchase. Aptly chosen ETFs are good for a shorter tenure as charges are minimal and exit mechanism is easy, Cheruvu says. “A combination of the two can be a good strategy for investors – SGBs for allocation towards one’s long-term strategic portfolio, and ETFs for liquidity and tactical investing, apart from making a larger allocation,” suggests Kulkarni.

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