As India enters the long-growing list of countries that are being affected by inflation, gold continues to shine as a hedge against high prices. Historically, it has been seen that prices of gold are inversely proportional to those of stocks. Hence, all the more reason to park some of the hard-earned savings in the precious metal.
Even when things are on an even keel and the world economy thrums along at a decent pace, the precious metal provides decent returns in the long run. During times of currency fluctuations, when the price of say, the rupee, tumbles against the dollar, gold acts as a cushion against such unsavoury blows. Its liquid nature and practical use in the form of jewellery only heightens its allure.