As the New Year brings some hope amid the looming Corona cloud, investors should introspect the investment decisions they made in the pandemic-hit year-gone-by, before taking fresh financial decisions.
“Thinking about financial or investment decisions should be a must, to know where one stands, while remembering that prudent investments are often held for the long-term,” said Ashraf Rizvi, Founder & CEO, Gilded.
With the Covid-19 pandemic still threatening to derail the economy and the investment journey, should you take risks, or should you play safe and invest in traditionally safe investment instruments?
Rizvi advises the investors to play safe and to choose safer investment options.
“Gold is one such investment avenues that has consistently outperformed cash deposits and inflation when held for the long term. If one considers a short time span, gold, of course, can rise and fall, which is the case with any asset. Over this past year, gold in India has indeed fluctuated, reaching pre-pandemic levels during the festive season due to pent-up demand. With digitisation becoming more prevalent in our daily lives, digital gold has gained and continues to gain considerable traction in India as it combines the traditions attached to the yellow metal appreciated by older generations with new-age technology that the millennial and Gen Z population desire. This combination of tech and an age-old tradition has paved the way to ‘gifting’ digital gold to loved ones, a gift one would certainly cherish for its inherent value, its traditional significance, and its cutting-edge technology,” said Rizvi.
“The COVID-induced pandemic put pressure on the safety nets of the past and inspired an impetus on building wealth. Given the crash in equities and other market-related assets, many resorted to investing in commodities – specifically gold, in its traditional or digital form, as it is widely recognised as a steady store of value and a safe haven in uncertain times. Considering the additional charges saved and returns generated, digital gold is considered by many as a great investment option, especially for first–time young investors. It is easy to purchase through fractional investments, hold on to and accumulate over time as a safety net protecting against inflation,” he added.
Talking in favour of gold as a lucrative investment option at present, Rizvi said, “We believe the outlook for digital gold in 2022 remains positive as more and more people grow comfortable with digital alternatives that make ownership of physical gold easier than ever before. The looming pandemic with its unpredictable twists and turns is expected to keep up the demand for what’s often considered a relatively safe commodity like gold, more so in its digital form, which, unlike its traditional counterpart, is accessible remotely. Overall, not just for gold but speaking about personal finance as a whole, Millennials and Gen Z are likely to take increasing ownership in managing their personal finances. The increasing number of youngsters joining the workforce and beginning to build their investment portfolios will likely support this trend. In particular, because the current generation comprises digital natives, digital gold, and other digital investment alternatives, which offer ease of use, transparency, and access through the convenience of smartphones, it supports greater independence in digital financial management for this demographic,”
“Lastly, with potential government regulations and policies in the pipeline. The rate of adoption and its demand in 2022 will also significantly depend on the clarity the government can provide to both consumers and companies that deliver digital financial services. We are, of course, hoping for clarity in regulations that will help enable investors to make informed investment decisions since I do believe that regulated growth is the best growth for any business,” Rizvi further said.