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Gold

Gold as an asset allocation and hedge against inflation

Unless we use it on regular basis, it would be prudent to accumulate gold through Gold ETFs instead of buying gold ornaments. Gold ornaments costs escalates due to high wastage and making charges. Another disadvantage of holding the gold in physical form is its safety and security.

Gold ETFs provide an opportunity to buy at low cost and it is more secured than holding the physical gold. If one has demat account

Gold Sovereign bonds are also good option which also earn interest of around 2.5% (may change time to time) apart from possibility of capital growth.

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