InvestorQ : Is Gold is the better option as compare to stocks in this volatile market?
vidhya Laxmi made post

Is Gold is the better option as compare to stocks in this volatile market?

Answer
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Archita Jajjoo answered.
1 month ago


Your investment should be based on your financial profile. Once you understand your financial needs and work around your financial goals, you will be in a better position to make the choice. It is very difficult to comment on where you should invest as it totally depends on your salary, financial goals, risk appetite, etc.

Further, you should never invest, especially in stocks, based on trends. Equities are very volatile and high-risk investments where one can create wealth while also incur huge losses in a day of trading. Having said that, it is also a very interesting investment category to learn and understand and can give one an opportunity to accumulate wealth over a longer period of time, irrespective of the volatility in the markets. Direct investment in equities is not as easy as it seems and requires quite a bit of homework.

Anyway, stocks and gold can't be compared as they are two vividly different asset classes and should be utilized for contrasting goals. For eg- While stocks will work better in the long term and can be pegged to a long-term goal like retirement, gold, on the other hand, is a safe haven. It works as an inflation hedge as well. So, if you want to keep a proportion of your savings safe without much expectation on returns, then gold works best. Depending upon which of the two outcomes you require, you should take the call. But be sure to avoid making investment decisions based on current trends.