As the saying goes by Warren Buffett, ‘Be fearful when others are greedy, and be greedy when others are fearful’ makes it very relevant in these uncertain times.
The Indian equity markets have had a disturbing last month as they grappled to respond to the developing spread of the coronavirus and the resultant global closedown. Even after the sell-off, there remains a high degree of unpredictability in terms of how the virus scenario may unwind as this is a true black swan event, and there are no practical guides handy as reference points to the markets.
But from a markets aspect, the essential thing to note is that despite the path that the virus exerts, eventually, it is more of a one-off severance that the economy will come out of – and so if we take a longer-term picture – say 3-5 years; we don’t foresee any enduring damage to the economy or the markets from the prevailing events.
So how should existing investors – particularly SIP investors that have been routinely allocating to the markets and likely find themselves buried in losses – approach this environment? It’s only fair that such a sudden shift in fortune combined with negative media headlines causes people to question their investment decisions. However, we suggest that any abrupt or knee-jerk reaction at this period should be avoided, and instead, if investors are looking for places to invest in, then gold SIP is a good place to put your bets on. Currently, you can buy gold and silver online digitally as well as in physical forms.
Since people hold gold in lieu of financial savings, financial experts don’t encourage people to acquire gold in physical form. This is generally because exchanging physical gold (especially jewellery) is usually considered unfavorable and is done only if a family is suffering critical financial distress. Hence, with respect to this scenario, you may withdraw buying physical gold for investment purposes and alternatively buy gold and silver online in various forms. These include gold exchange-traded funds (ETFs), Sovereign Gold Bonds (SGBs), and physical form of gold as well. Hence, you should choose between these options wisely as each has different features.
It is time to focus on the long term potential of the markets, consider topping up or creating new gold SIPs – If cash-flows permit and Augmont “Gold for All” App is a great way to buy gold and silver online at your convenience. When equities have declined, and debt has seen volatility, it is the right to seek comfort in gold. Also, the gold price has risen over last year, making it appealing for long term investment. Gold SIPs provide the perfect way of investing in such tough market environments and invest for a better future.

Read more: Gold fights back as the world fights back COVID-19