ET: ETMarkets Smart Talk: Gold has now turned into a speculative asset: Manoj Trivedi
"Gold is no longer playing the role of a safe haven during economic crises (as it should have during the Ukraine-Russia War, but did not), nor is it serving as an effective inflation hedge. This is because of trading in gold. Conceptually, depreciation of the INR relative to the USD results in gold prices in INR terms increasing, as India imports a lot of gold."
â€śOur house view is that gold has now turned into a speculative asset. Academically, gold is an alternative currency. It is a store of value,â€ť says Manoj Trivedi, Co-founder, Jama Wealth.
In an interview with ETMarkets, Trivedi said: â€śIf we look at gold prices in USD, they have not increased since the COVID period, despite a lot of currency being printed. It has now become a trading asset,â€ť Edited excerpts:
The Indian market looks nervous ahead of Budget 2023. Is it global cues, or is there something that is worrying investors?
Every year, depending on the trending flow of news/and rumors, traders try to take positions in the market. We normally see a lot of volatility in the run-up to the budget, as well as on Budget Day, although this trend is slightly reducing.
This year, talk of imposing a tax on long-term capital markets is again creating nervousness in the markets.
Global markets continue to be jittery, as the world speculates about recession in the US and in Europe. These factors will continue to impact the market even after the budget.
What are your expectations from Budget 2023? Do you think govt will be able to stick to fiscal discipline?
We have seen in the past, particularly in the post covid era, that our fiscal deficit targets have been relaxed. The current year has seen buoyancy in both direct and indirect collections.
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