Invest in Gold?

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Invest in Gold?

well if you are an Indian, it may not make a lot of sense to invest in gold. I am not saying that the gold prices will not rise. I bet they will.

Dollar is under pressure and I am sure US Will experience high inflation in near future. That is good omen for investors in gold, but at the same time Indian Rupee will appreciate. so the same reason why gold will appreciate globally Indian investors may not be able to enjoy the appreciation.

here is the explanation.

Say for example if you need 100 Dollar to buy 10 units of gold. If Dollar depreciate than for the same 10 units of gold seller will ask for more dollar because it has depreciated in price.

Now lets see what will happens in India. suppose today you need 100 Rupees to buy 10 units of gold, and Rupee starts appreciating, than for the same 10 units of gold a buyer will be willing to offer less Rupee as the currency has appreciate.

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