Gold in India is considered as both a fashion statement and a status symbol and is regularly purchased on numerous important occasions like weddings, religious events, baby showers, etc. But other than that, choosing gold as an investment option helps you protect your savings in the long term. Investing in gold is one of the safest investments that you can do in this day and age. With haphazard financial situations around the globe and national events like demonetisation, gold is the only place you can put your money with utmost trust. But it is essential that you know everything you need to to make an informed decision about investing in gold. Here are 4 reasons why gold is a good investment option:
- Easily Exchangeable
Unlike other investments, gold assets can be converted to cash by any of the numerous gold vendors in the market, making them an easily liquefiable financial instrument. This makes converting assets relatively simpler as compared to other forms of investments since gold can never turn into a liability.
- Not Affected By Financial Turbulence
Money invested in gold is insured against economic shocks and serious changes in the market. In fact, the Global Financial Crisis, which started in 2008, actually increased the gold demand, boosting the price of gold 4 times over. It is, in fact, a better option to invest in gold early on when the financial scene is relatively stable so that you don’t lose your money but actually make a profitable return from it.
- Investment Diversification
Any decent investment banker can tell you the necessity of distributing assets in different investment options. Buying physical gold or gold securities is an amazing way to save your extra income. There are no dividends or returns of investing in gold, but comparatively in the long term, it might save you a hell of a lot more money, especially when you need it.
- It Is Tangible
The fact that gold is a real and tangible product, unlike other investment options like cryptocurrencies, equities and mutual funds, provides a higher level of security with minimum amount of mental stress. The satisfaction of holding your investment in your hand and knowing that it’s not going anywhere is one of the best feelings in the world. Also, gold can be donned in the form of jewellery, which is an added advantage.
I’m sure there are a lot of investments, both new and old ones, that will provide you with high dividends (with high risk), but none can be compared to the level of financial and mental security you can have if you invest in gold. One of the best examples are the Indian housewives who hold about 11% of the world’s gold, which is more than what the reserves of the USA, the IMF, Switzerland and Germany, combined, hold. [REF] The fact that the women of India hold so much trust in gold shows that gold is one of the best and most trustworthy investment options out there. There are a lot of ways to invest in gold, like gold jewellery, gold bullions, collector coins and gold securities. The choice is completely up to you. Just remember the points above the next time you’re building your investment portfolio.