India’s youngest billionaire Nikhil Kamath recommends gold as a safe investment against inflation

From gold chains for children to jewelery gifted on weddings and the annual custom of filling up safes with the precious metal on Dhanteras, tradition is interlinked with investment in India. The world may be exploring new age investments such as infrastructure bonds and understanding the perils of trading in NFTs or cryptocurrencies, but gold’s glitter remains stronger than ever in India. The yellow metal considered a safe haven asset has now been confirmed as a smart investment by none other than India’s youngest billionaire Nikhil Kamath.

Batting for tradition

The Zerodha founder has tweeted highlighting the significance of the age old investment vehicle as a firmly placed hedge in times when inflation threatens to impact household savings. Urging young Indians to stick to tradition, Kamath also revealed that he consistently allocates 10 per cent of his investments to gold for all market cycles.

Although the gold rates globally are expected to remain volatile, any drop can be a good opportunity to buy, and stick to it for a longer term.

Gold shines in the digital space

Young Indians are also showing an increased appetite for digital gold available through websites and apps such as PhonePe and Paytm, where they don’t need to worry about the storage and safety of the metal. Speaking of gold in electronic form, the BSE has also released digital gold receipts to attract tech savvy millennials and gen Zs, looking to invest in new age assets while steering clear of unnecessary risks. This year, Dhanteras saw gold sales hit record highs in a post-pandemic festive recovery, while the wedding season that followed right after was also touted as a time for the yellow metal to thrive.

Kamath is among startup founders who maintain a consistent presence on social media, but unlike viral content, he is known for threads with smart investment insights for young followers. He has also invested in ventures such as fractional owmnership platform BHIVE, which recently hit Rs 100 crore in assets under management, just 14 months after its launch.