has emerged as the most talked-about in recent times, attracting immense interest globally. However, S Naren, Chief Investment Officer at , has sounded a cautionary note on the yellow metal, stating that despite its current popularity, gold is not a lucrative investment option at this point.
In a recent interaction with ETNow, Naren pointed out that the surge in questions about gold during investor meetings reflects the heightened focus on the asset, but he maintained that its value proposition is questionable, especially given its current price levels. “Gold is even worse,” he asserted, emphasizing that the metal is no longer as attractive as it was two years ago.
Despite its widespread popularity, he indicated that the precious metal is not an attractive investment option currently, particularly when compared to its more favorable outlook two years ago.
“Two years back, for example, gold and silver were very-very interesting, so we actually thought it was very-very interesting, now even that does not look at this point of time,” he said.
Discussing gold’s meteoric rise, Naren remarked, “The asset class which is most in vogue right now is gold. If you go for any meeting, the number of questions we get on gold is unbelievable at this point of time.”
On the front, Naren observed that in India, the 10-year government securities are currently at some of the lowest interest rates seen in recent years, contrasting sharply with the Western markets where 10-year yields are at multi-year highs.
“Across the world, you are at the highest yields in 10-year, except in China and India,” he noted, pointing to the relative lack of value in Indian debt instruments.
What should investors do?
The veteran investor suggested a diversified investment approach, advising that it is not the time to focus on a single asset class but rather to allocate capital across multiple assets while maintaining a conservative stance.