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Can Sovereign Gold Bonds Assist in Overcoming Inflationary Pressures?


Dhirendra Kumar explains if investing in gold is a good idea For your investment queries, go to 👉🏾 #ValueResearch #MutualFund #DhirendraKumar #Investment #SovereignGoldBonds On this channel, you will find the answers to some of the most common queries related to mutual funds, stocks, tax-saving and financial planning. For over three decades now, Value Research has empowered savers to invest wisely and achieve their financial goals. One of the first equity research firms in the country, for decades, it is a trusted source of independent investment research, Fund Ratings, stock information, and mutual funds. Not just for individual investors, Value Research is also a trusted source of data to leaders in the business such as Bloomberg, Groww, Paytm, Policybazaar, Paisabazaar, Economictimes, ET Money, Axis Securities, Bajaj Finserv, ICICI Direct, HDFC Bank, ICICI Bank, Tat Capital, to name a few. PRODUCT & SERVICES: Mutual Fund Insight: Monthly magazine on mutual fund investing, published since 2002. Available in print and digital. 👉🏾 Wealth Insight: Monthly magazine on equity investing, published since 2006. Available in print and digital. 👉🏾 Best Funds for Growth, Income, and Short-term Goals: Annual companion to mutual fund investing, published since 2009. Available in print and digital. 👉🏾 Your Guide to the Best Investments: Comprehensive factbook on ALL investment avenues available to the Indian saver. Published since 2011, updated annually. Available in print and digital. 👉🏾 The Way to Save & Prosper: The Best of Mutual Fund Insight. First published in 2004, currently the third updated edition. Available in print and digital. 👉🏾 Value Research Stock Advisor: Premium stock advisory service. Launched in 2017. 👉🏾 ( LINKS: Website: Twitter: Facebook: Instagram: Spotify: ...(read more)



LEARN ABOUT: Investing During Inflation
REVEALED: Best Investment During Inflation
HOW TO INVEST IN GOLD: Gold IRA Investing
HOW TO INVEST IN SILVER: Silver IRA Investing
Inflation has been a concern for most investors in recent years. Inflation is a persistent increase in the general price level of goods and services in an economy over a period of time. With inflation, the purchasing power of money declines; hence, investors tend to look for investments that offer a hedge against inflation. One of the possible investment options to hedge against inflation is Sovereign Gold Bonds (SGBs), which have gained much popularity in recent times. Sovereign Gold Bonds are government securities that are issued by the Reserve Bank of India (RBI) on behalf of the Government of India. They are available for subscription to resident individuals (including minors), HUFs, trusts, universities and charitable institutions. These bonds are issued in denominations of one gram of gold, and the minimum investment is one gram. One key characteristic of these bonds is that the returns on them are linked to the prevailing market price of gold. Therefore, the returns on SGBs are correlated with the price of gold, which tends to increase during inflationary periods. Sovereign Gold Bonds have several advantages that make them a viable option to beat inflation. Firstly, they offer an annual fixed interest rate of 2.5%, which is payable semi-annually. This interest rate provides an additional return over and above the price appreciation of gold. Secondly, there is no storage cost associated with SGBs as investors do not take physical possession of gold and the bonds are held in their demat account. Thirdly, they offer a high degree of liquidity as they can be traded on the stock exchange. Lastly, SGBs offer tax benefits to investors as capital gains tax is exempted on redemption after a minimum holding period of eight years. Investing in SGBs can be a smart move to beat inflation as they provide an effective hedge against inflation. Historically, gold as an asset class has proved to be a reliable hedge against inflation. During inflationary periods, the price of goods and services increases, and the demand for assets such as gold increases, leading to a rise in gold prices. Therefore, investing in SGBs can provide the much-needed inflation hedging benefits. In conclusion, inflation is a concern for investors, and it is crucial to invest in assets that provide a hedge against inflation. Sovereign Gold Bonds are an attractive investment option for investors who want to beat inflation. They offer a fixed annual interest rate, no storage cost, high liquidity, and tax benefits. Moreover, with the price of gold trending upwards during inflationary periods, investors are likely to benefit from the appreciation of gold prices. Therefore, it is recommended that investors consider investing in SGBs to beat inflation in the long run. https://inflationprotection.org/can-sovereign-gold-bonds-assist-in-overcoming-inflationary-pressures/?feed_id=95796&_unique_id=6459f09223f0e #Inflation #Retirement #GoldIRA #Wealth #Investing #AskValueResearch #Investments #mutualfund #SovereignGoldBonds #ValueResearch #ValueResearchHelpline #InvestDuringInflation #AskValueResearch #Investments #mutualfund #SovereignGoldBonds #ValueResearch #ValueResearchHelpline

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