Should I buy more gold?

"Gold price continues to increase. Should I buy more gold?"

This is a common question lingering on many of our minds. Sensex is not doing great. Parle G and more companies are considering to lay off their employees in thousands. The automobile sector is struggling with sales. If you open the newspaper, there is only negativity in all industries. There is no hope even for market experts. It is as if someone had turned the clock back to 2008 when the last recession began. It only makes sense for someone to invest in gold now, for only the bullion value keeps increasing.

Should I buy more gold?

The answer is Yes and No.

Yes, if you want to buy gold. Its time for a monsoon wedding. The upcoming season is full of festivities. Janmashtami celebrations just got over the previous week, and with the new week, people are ready to celebrate Vinayaka's birthday. It will be followed by Navratri, which is elaborately celebrated in the Northern parts of India. So if you want to purchase gold as a mark of celebrations, go ahead.

Should I buy gold because its price is increasing? Perhaps I can sell it later and make money!

The answer to this part is NO. Think of it this way. If the cost of tomato or onion increase, will you continue to buy more? OK, I agree that I cannot compare perishable items with gold. I raised this to make a point. Other than gold, one does not buy anything when the price is increasing. In fact, we take the opposite approach. We make a purchase only when a product is on sale or available at a discount.

Equity stocks are on sale right now. With companies struggling to make "more" profit, their stock prices have fallen. Given the trend worldwide, equity stocks will continue to be available at a discounted rate for at least two to three quarters. If Oracle's prediction turns out to be accurate, we are heading towards another cycle of recession. The fittest will, indeed, survive. So, keep watching for buying more equity stocks at a discounted price.

Do not know how to pick equity stocks? Do not worry. Leave it to the experts. They are professional, and do all the background works to identify stocks that have the potential to grow with time and generate wealth for you in the long run. 

Did you know? You can earn Rs. 35 lakhs in 30 years by investing only Rs. 35 per day! Chances are in 30 years you will totally forget about the recession cycles. The only thing that will remain in your memory is the wealth that you accumulate.

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