Rs 40,000: The spot price for 999 purity gold crossed Rs 40,000 per 10 grams in major metros last week on lingering worries about a possible global recession and uncertainty over US-China trade talks.
- As gold is imported in India, a weaker rupee also contributed to the rise in prices.
- The yellow metal has been rallying for some months now, as many central banks and global investors have been investing in it.
- While there are predictions that gold can even touch Rs 45,000 per 10 grams in the country, don’t rush to invest in it.
- Avoid speculating in the yellow metal. Instead, evaluate your need for it at the portfolio level.
- Gold is essential in every portfolio as a hedging tool. The allocation, however, should be restricted to 10 per cent.
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A few links for further reading
Invest and emigrate
The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.
Small savings schemes
Investors in small savings schemes breathed a sigh of relief when the government announced on October 1 that interest rates on these instruments would not be revised for the fourth quarter of the calendar year. With the economy witnessing a slowdown, and the stock markets also turning volatile, many investors are looking for alternative avenues to park their savings. Small savings schemes, with their sovereign guarantee, have emerged as a viable alternative.
NUMBER OF THE WEEK
Rs 10,000: Enhanced withdrawal limit allowed by RBI to customers of PMC Bank.