Here are key benefits of investing in gold

As per Ravi, one should take gold more as a hedge.

Since gold is not responsive to stock market movements, holding it helps in hedging the risks associated with market-linked investment instruments.

As per Ravi, gold is set to fall marginally below and will rise only after 2-3 months. This makes it one of the best bets now.

It must be noted that the government while presenting the budget 2021-22, announced a cut in import duties on gold and silver to 7.5 percent from 12.5 percent. However, it also imposed a 2.5 percent cess – a separate tax – on the imports. After the changes, gold imports effectively attract a 10.75 percent tax.

The reduction in duty on gold and silver has led to a correction in prices.

Ravi stresses that gold is a long-term investment that has been proved historically.

For example- sovereign gold bonds or SGBs, which have been one of the favorite routes for retail investors looking to take exposure in gold, offer interest at 2.5 percent on the invested value to its investors. So, for those who are investing for a very long period, 2.5 percent interest can make a big difference to the overall return.

Additionally, with SGBs, investors are not required to worry about the storage of gold as it is in a demat form. Also, there are no local taxes that a buyer needs to pay while buying.

Gold ETFs do not charge any exit loads and offer higher liquidity. Units of gold funds can be redeemed by selling them back to the fund house based on the NAV for the day.

Physical gold also provides an easy liquidity option.