Hi there, I’m a student and I’m considering investing ₹4 lakhs in gold to protect against rupee devaluation and inflation. I’ll allocate ₹1.6 lakhs to physical gold, holding it for about five years. If I believe the situation improves, I’ll add an additional ₹1 lakh. The remaining amount will be invested in gold ETFs, split into two ₹1.5 lakh chunks each time. If gold prices return to between ₹1.4 and ₹1.5 lakhs, I’ll invest those chunks in ETFs.
I’m curious to know your thoughts on this plan and if you have any better suggestions for ETFs to invest in.
Here’s why I’m considering investing in gold:
1) US tariff war
2) Rupee devaluation due to India being a net importer, rising oil and essential prices
3) RBI’s lack of support for the rupee’s value
4) India’s reliance on EMI-driven GDP and limited manufacturing, unlike countries like China and Vietnam, which have a positive impact on the rupee’s value
5) Foreign investors taking money out and no significant new investments currently
6) Interest rates being cut and fixed deposits not being good options
7) The hype around AI has led to increased prices for commodities related to AI, which may correct
8) Geopolitical tensions are everywhere
I’m not sure if it’s the right time to buy or not. Please review my thoughts and help me make an informed investment decision.