Year endings are riddled with a peculiar paradox. They may reek of despair over a perturbed past, yet are redolent with hope for the future. They may be saddled with banalities springing from hindsight, yet shimmer with possibilities stemming from foresight. As we straddle the divide between 2011 and 2012, the financial world is beginning to sniff out these contrasts.
The investors are rumbling with resentment over a year that has landed them losses, but are calmly cautious about the profits they may make in the coming year. The players in the investing world-stock brokers, fund managers, realty developers, insurers-and the industry are grim about stunted growth, but are sanguine about stability in the domestic market.
As we prepare to shift gears and sidle into the next year we bring to you the opinions of various experts on where you should invest in the coming year.
Going for Gold? It's as Safe as it Gets
The investors are rumbling with resentment over a year that has landed them losses, but are calmly cautious about the profits they may make in the coming year. The players in the investing world-stock brokers, fund managers, realty developers, insurers-and the industry are grim about stunted growth, but are sanguine about stability in the domestic market.
As we prepare to shift gears and sidle into the next year we bring to you the opinions of various experts on where you should invest in the coming year.
Going for Gold? It's as Safe as it Gets
MADAN SABNAVIS Chief Economist, Care Ratings
Commodities, as aninvestment class, would offer superior and stable returns in 2012 given the state of the world economy and stock markets. Gold will retain its sheen as an inflation guard and safe harbor asset despite the fact that the dollar will have the upper hand vis-a-vis the euro. While only stable returns may be expected in gold, other metals would tend to be bullish given that there could be a turnaround in the world economies, especially emerging markets, albeit at a gradual pace in the new year. Currencies will still retain its flavor given the volatility in the rupee and the uncertainty of capital flows, thus making currency futures an interesting option.
Commodities, as aninvestment class, would offer superior and stable returns in 2012 given the state of the world economy and stock markets. Gold will retain its sheen as an inflation guard and safe harbor asset despite the fact that the dollar will have the upper hand vis-a-vis the euro. While only stable returns may be expected in gold, other metals would tend to be bullish given that there could be a turnaround in the world economies, especially emerging markets, albeit at a gradual pace in the new year. Currencies will still retain its flavor given the volatility in the rupee and the uncertainty of capital flows, thus making currency futures an interesting option.
NAVEEN MATHUR Associate Director (Currencies & Commodities), Angel Broking
One must allocate funds in gold according to the risk appetite and, most importantly, depending on the market scenario. In case of long-term investment in gold, holding gold in physical form continues to be the best bet through e-gold contract on NSEL or coins and bars. An investor, not keen on holding the physical yellow metal, can invest in Gold ETFs. If the investor has a high risk appetite, we would recommend trading in the gold futures platform as one can benefit from either the rising or downside trend in prices. We expect the upside in gold prices to remain as economic risks may worsen, which may lead to safe haven buying for gold.
One must allocate funds in gold according to the risk appetite and, most importantly, depending on the market scenario. In case of long-term investment in gold, holding gold in physical form continues to be the best bet through e-gold contract on NSEL or coins and bars. An investor, not keen on holding the physical yellow metal, can invest in Gold ETFs. If the investor has a high risk appetite, we would recommend trading in the gold futures platform as one can benefit from either the rising or downside trend in prices. We expect the upside in gold prices to remain as economic risks may worsen, which may lead to safe haven buying for gold.
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