Over the period of past 25 years, the rise in gold prices was @ 5.1% (compounded annualised growth) whereas the inflation was @ 6.8%. Those who relied only on gold investments have thus lost a good deal in terms of real value. So also, it is not a common man's tendency to sell gold to tide over bad times in the life, unless it becomes the last resort for him to raise money. These points have to be noted before investing in gold, though it can be one of the many items in the financial planning of a person. e.g. FDRs, Postal MIP, Bonds, Mutual Funds, KVP / NSC, equities. Each one of these need to be balanced properly so as to achieve the objectives of the investor. This is an issue of financial planning.
