Prime Minister Narendra Modi on Sunday urged citizens to avoid gold purchases and cut fuel consumption to protect the economy. His remarks come amid the ongoing crisis caused by the US-Iran conflict.
Addressing a public rally in Hyderabad, he asked people to use public transport, metros and carpooling. PM Modi said reducing imports such as gold, crude oil and fuel consumption would help conserve foreign exchange reserves and limit the economic impact of global disruptions.
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“Gold purchases are another area where foreign exchange is used extensively. In the national interest, we must resolve not to purchase gold for a year,” he said.
However, given gold's long-standing role as a safe-haven asset during periods of economic uncertainty, it can feel risky to completely avoid gold purchases. After PM Modi's appeal, I turned to AI for answers. I asked Google Gemini, Anthropic Claude and OpenAI's ChatGPT to suggest investment alternatives to gold.
Here's How They Responded
1. OpenAI's ChatGPT
According to ChatGPT, a balanced approach with a focus on diversification may be better compared to reacting emotionally to the global crisis.
Instead of heavily buying physical gold, the AI bot suggested diversifying investments across equity mutual funds, index funds, fixed deposits and government bonds. It also said that a small allocation may be given to gold ETFs.
“For most investors, keeping 5 to 10% of a portfolio in gold is reasonable rather than eliminating it completely. Financial discipline and diversification protect wealth far better than reacting emotionally to global crises,” it said.
2. Google's Gemini
The Google chatbot responded that while gold is a traditional "safe haven” asset, its high import cost strains national reserves during geopolitical crises like the current US-Iran conflict. To balance personal security while helping the economy, it suggested these financial alternatives:
- Gemini suggested investing in fixed-Income instruments such as fixed deposits (FDs) or Public Provident Fund (PPF) that provide guaranteed returns and high liquidity.
- It also said that diversifying into blue-chip companies or index funds can offer superior long-term growth, especially in sectors that are less sensitive to fuel prices, like IT or Pharma.
- It also suggested looking for alternative options such as government securities (G-Secs), which provide risk-free return while supporting national infrastructure.
3. Anthropic's Claude
Echoing similar thoughts, Anthropic's Claude suggested being thoughtful. It called for a focus on low risk assets such as FDs and PPF, which give guaranteed returns even amid the broader market volatility. Claude also suggested investing in government bonds or debt mutual funds for slightly better returns.
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Disclaimer: This article is only for informational purpose
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