Should you invest in gold?

Dhirendra, I am a little curious to know the reason behind such a high yield in gold over the last one year. What is it? Dhirendra: It is not exactly one year. Gold has zoomed over the last three to four months. It makes a periodic comeback and makes a big one. But don't lose perspective. Look at three- and five-year returns. It is only around 5.5 to 6.5 per cent. Even if you look at the 10-year return, it is only around 8 per cent. And this is after taking into account the recent and the earlier big jumps which we have seen. People have a traditional view that gold is something which is bankable. It is believed to be the king of bad times. There is a belief that it is an investment for bad times and comes in handy. And so it did. For example, during partition in 1947, anyone who could carry gold with him was much wealthier and more secure than someone who couldn't. They couldn't carry any

This article was originally published on October 12, 2019.