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Why you should invest in gold in these uncertain times

Investing in crypto assets involves high risk as they are complex investment products

Is this the right time to invest in cryptocurrencies? What are the pitfalls, more so after the FTX disaster and the banking collapse in the US?

The recent collapse of banks in US has drawn the attention of the whole world and tremors are being felt across the financial system globally. Central banks will now step up their vigilance to avert any further cracks in the financial system.

In this era of uncertainty, thinking of investing in crypto assets is certainly not a viable option. While we call it “cryptocurrency”, the central banks of the world have negated this interpretation and they maintain that they are the only institutions who can deal with native currencies.

Again, cryptos are also traded in fiat currency, like any other investment product and yet, the regulations for crypto trading are still at a nascent stage which can lead to setbacks for investors, with FTX being case in point. Unless regulators enact suitable legislations and grant all the requisite clearances for trading in crypto assets, they remain a risky bet.

Investing in crypto assets involves high risk as they are complex investment products. Unless you have clearly understood the pitfalls and you are prepared for any eventuality including loss of capital, you should not be investing any of your hard-earned money in crypto. The mere fact that prices for these crypto assets have dropped considerably is certainly not a criterion for investment.

On the contrary, there are abundant options available in the market for you to invest, from equities to bonds and so on. Please spend some time to analyse these investment options and consider associated risks before you make a choice to invest.

Is gold a safe investment in these uncertain times? How much gold should I buy every month? I am 30 years old and work in tech.

The world is and will continue to evolve at a rapid pace. In this journey, there are uncertain times when gold is considered as safe haven. Your age is ideal to start allocating part of your monthly earnings for investment. At this stage, please do not miss out on building up an emergency corpus that may come to handy in challenging times. From your monthly earnings, you may allocate part of the amount for investment. From the total amount available for investment, you may choose to contribute 10 to 15 % of the overall investment amount in gold and instruments related to gold. The rest of the amount available for investment may be allocated cautiously in investment products of your choice that you have identified after some research and analysis. These allocations should be considered from a long term

perspective, away from daily volatility and price changes. Stock markets are volatile, and investment is always subject to market risk. Needless to add that you should also set aside funds for enhancing your skills to keep pace with the technological changes.

Dhaval Jasani is founder and CEO of ZTI Global Consulting