Yourmentor

[Gold Series]

Session 1: Introduction to Gold as an Alternative Asset Class


We are glad to have you with us for our 1st Session on Gold – Introduction to Gold as an alternative asset class

Alright so let’s get started...


Gold as an asset class
Why Invest in Equity?

  • Many of us buy gold with an emotional touch. And why not, the glitter which it presents and the feeling of content it gives are truly worth it.

  • This emotional aspect draws many of us towards purchasing gold in a physical form.

  • With uncertainty looming around in the global economy, having gold in your investment portfolio has become imperative. However, would holding gold the physical way be a prudent thing for you when you need to accumulate it over turbulent times?

Gold as a store of value
Why Invest in Equity?

  • Gold has always occupied the center stage in the evolution and development of monetary system in the known human history.

  • In contrast to other major asset class such as equities - which derive their value from the underlying businesses, or real estate which could provide rental yields for you along with a potential for capital appreciation or debt which pays regular interest to investors gold possess no such distinctive characteristic(s).

  • But having said that, let us apprise you that Gold is considered to be a store of value, as it enables you to combat the rising cost of living over the long-term

  • As one of the key features of Gold is to retain its value even during uncertainties, it plays an important role in portfolio diversification.

  • Gold – A Defensive Asset...

    Why Invest in Equity?



  • The key to diversification is to invest in instruments that are not closely correlated to one another. As an investor you need to own gold since it almost shares negative correlation with some commonly held asset classes like equities.

  • Gold retains its value not only in times of financial or economic uncertainty, but even in times of geopolitical uncertainties.

  • Therefore, even individual investors should hold gold as a defensive asset in their investment portfolio.



So to end our today’s learning exercise we now invite you to test your learning by taking up this simple quiz.