So, Why should one invest in Gold?
Firstly, investing in Gold is a hedge against inflation. The ROI on gold investment is in line with the rate of inflation.
It has been proved from 2006 to 2011 that investing in Gold – be it Jewellery, Gold Coin or Gold Bars and so on has been remarkable. The average return per annum for investment in gold during this time period was 29% much better than any other investment options.
Secondly, Gold is inversely correlated to equity investments – in case the equity markets perform poorly, Gold tends to do well. So having gold as an investment option in your portfolio mix will help you reduce the overall volatility of your portfolio.