‘Risk involved in investing in gold has heightened’

The steep rise in gold prices over the past few years indicates that the risk involved in investment in gold has heightened, cautioned K. C. Chakrabarty, Deputy Governor, Reserve Bank of India. This is a fact which is not recognised by people, he said at a Workshop on Financial Literacy. Some basic concepts are not fully appreciated even by seemingly literate groups, resulting in assumption of excessive risks. “One example that I often quote about the widespread financial illiteracy is the theory being floated around by the so-called ‘financial advisers’ about investment in gold being a ‘hedge against inflation’ and a ‘safe asset’,” said the Deputy Governor..............

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