Number of the week: 7-year high

Business Standard
27th February

7-year high: Gold climbed to a 7-year high last week, surpassing the $1,600 level.

  • The sharp rise is, in all probability, the outcome of worries about the global economic impact of the coronavirus outbreak.
  • The World Health Organization last week confirmed 73,332 cases of COVID-19, the new coronavirus. Of these, over 2,500 have died so far in China alone, according to WHO.
  • As a result, capital is moving to gold from assets impacted by the outbreak. Gold is a safe haven for investors looking to avoid volatility in risk-prone avenues.
  • In India, too, April gold hit a new high of Rs 41,798 per 10 grams on February 20. Experts say investors should buy on dips and go long on the metal as the upside remains intact.

Disclaimer: This information is from a third party—Business Standard—offered through a tie-up to Kotak Securities customers for free for life. The third party content is not created or endorsed by any business offering products or services through it. The provision of this third party content is for general informational purposes only and does not constitute a research call, recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Also, the views and opinions stated in the content belong to Business Standard. Kotak Securities does not uphold nor promote any of the views. These reports do not, in any way, qualify as a Kotak Securities research report.

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.

Hard path to growth

The signals for the economy are not positive: overall demand is yet to pick up; the share of total exports in India’s GDP is declining, and industrial output pattern remains worrying.

Want to get this in your email?