Nikhil Kamath, co-founder of Zerodha and the alternative asset management firm TrueBeacon, is buying lots of gold. It can also be termed as a hedge against the rising threat of inflation since the fund’s management has already collected gold to the tune of 15% of the fund’s assets. Kamath’s support for gold as an inflation hedge goes against the present trend of global institutional and retail investors buying Bitcoin to protect themselves against uncontrolled inflation.
In my opinion, gold will become popular when cryptocurrencies become unpopular. In an interview with Moneycontrol, Kamath said, “There has been a tremendous drop in cryptos, and if that crisis continues, I think gold will suddenly start becoming more appealing again.”
In his previous statement, he also says that “from a regulatory viewpoint, if it were taxed in the same manner that trading income is taxed, it would suddenly become a lot less appealing, even for individuals who consider it an asset class.”
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