Gold as best performing asset class: Gold News: Gold has given best return in 2022, should you invest?

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New Delhi: Traditionally, investing in gold has been given a lot of preference in India. Gold has proved again and again that why is it called a safe haven. Gold has once again proved this by giving better returns than equities and bonds in the calendar year 2022. It has been included in the best performing asset class so far this calendar year. MCX Gold has given 5.5 per cent returns during January to August 2022. At the same time, Midcaps has given a return of 3.4 percent. Nifty has given a return of 2.3 per cent in the same period. CRISIL Bond Index gave a return of 1.1 per cent.

Gold performance was strong in 2020 too

Even in 2020 affected by the epidemic, the performance of gold was the best. It gave 28 per cent return in 2020 as investors wanted to bet in safe assets. Last year, the metal gave a negative return of 4 per cent. At the same time, Smallcaps and Midcaps gave returns of 59 per cent and 46 per cent respectively.

Axis Securities said in a report, “Gold as an asset class has benefited from the high volatility in the market since February 24, 2022. Since February 24, geopolitical crises, rising inflation, oil and commodity prices have increased.” The jump in prices has resulted in significant volatility in the stock market and has impacted the performance of equities as an asset class.”

should you buy gold or not

In the domestic market from May till now, the prices of gold are in a kind of consolidation phase. They have got support at the level of Rs 49,500 per 10 grams. At the same time, at the higher level, it has faced restriction at the level of Rs 52,700.

Sugandh Sachdev, Vice President (Commodity & Currency Research), Religare Broking said that looking at the demand in the coming season, he feels investors should adopt a buying strategy during the fall. On the other hand, Axis Securities has retained a neutral stance for gold and an overweight stance for equities.

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