Gold — The Golden Investment- Continued

Investing Systematically

Photo by Dmitry Demidko on Unsplash

One question that my friends asked after reading the previous post “There are 4 series coming up for Sovereign Gold Bonds which one should I invest in?” “Should I wait for the Gold price to fall more and invest in later one”

I wish I had a method of prediction but unfortunately, I don’t. Gold prices fluctuate a lot on a day to day basis. There is a chance that gold prices may go up and an equal chance that they may come down in the next 4 months. However, the general trend is upwards. Unless you are thinking if “Trading” and not investing, it should not matter much. One way to work around volatility is to consider this investment also as SIP (Systematic Investment Plan).

Let’s say you want to invest Rs. 20000. You can divide this into 4 equal parts of 5000 each. Then invest 5000 in 2020–21 Series IX which opens on Dec 28th, followed by 5000 in 2020–21 Series X which opens on January 11 and so on. This will give you an average over the next 4 months.

Some people may feel that gold is too expensive right now due to pandemic and your thinking is justified. If you can time the market great. I personally have a very poor track record. Moreover, I don’t want to miss out on 2.5% interest.

Ultimately, it is your decision as it is your money.

A Contrarian Thinker