Gold has performed well during certain phases, but given negative returns in others. Even though gold has traditionally done well during times of high inflation and uncertainty, this did not happen in 2022. So, should you still invest in gold or sell or hold the yellow metal? Let's read and find out what the future holds for gold investors.
Since 2022 began, we have been seeing adverse events such as the Russia-Ukraine war, high inflation, central banks hiking interest rates globally, COVID-induced lockdowns in China, supply chains getting disrupted, etc. During such periods of high inflation and global uncertainty, gold is something that investors look up to.
Yes, gold is considered a safe haven against inflation and uncertainty. In this article, we will find out whether gold has done justice to its role as a safe haven.
Why do people buy gold?
Before we examine whether gold has done justice to its role as a safe haven, let us understand why people buy gold. We Indians love our yellow metal, and some of the reasons why we invest in gold include:
A financial asset that can give returns and create wealth