For Hindus in India and around the world, October is an important month, one of festivals and festivities that culminates with Diwali, the Festival of Lights.
Traditionally, Hindus have always purchased gold during important festivals. Gold is not only symbolic, it’s also been and still remains a major investment for most Indians. And as the Indian economy grows and income levels continue to rise, the sale of gold continues to increase, said Jerry Wagner, founder and president of Flexible Plan Investments and manager of its Gold Bullion Strategy Fund, which makes the case for investing in gold all the more compelling.
Gold, Wagner said, is the ultimate safe asset and in times of trouble, human beings always turn to gold. Now, with geopolitics in the headlines everyday, gold is even more attractive as a safe haven investment, but deriving the best benefit the asset class has to offer means investing in the right kind of gold fund.
“Most of the gold ETFs that are available on the market today are composed mainly of gold mining stocks, and therefore impacted by the production and earnings of those companies at any given time, as well as other factors, which means that in the long term, they are subject to more volatility,” Wagner said. And that, he said, defeats the purpose of investing in gold as a long-term, safe harbor asset.