Mutual Funds

Top 10 Reasons For Investing In Gold

Top 10 Reasons For Investing In Gold

Gold is an exceptional metal which is being revered uniquely in India.

Its significance as a valued currency is manifested in its popularity as an investment option apart from moulding ornaments and jewellery from it.

Robert Kiyosaki, who authored one of the best-selling books on financial subjects, ‘Rich Dad Poor Dad ‘labels Gold and Silver as “God’s money”.

Since the ages, gold has been treasured across the world and incorporated into trade systems.

Gold trading in compliance with the advancements of technology is increasingly shifting to virtual space.



However, an active investor would definitely pore on various queries and doubts arising in mind before committing to invest in gold.

The uncertainties question the credibility of the metal as a good investing option as it does not earn any interest and prospective benefits of doing so.

There are many conflicts and dilemmas that a person faces in choosing investment options such as whether to opt Mutual funds, bonds, equities, or Gold etc.

Herein are enlisted some reasons to take a step ahead in clarifying your doubts about to invest in gold or not.

Top 10 reasons to invest in Gold:

1. Gold is a hedge against inflation

Value of gold is not subject to market inflation which secures us from the worries while investing in stock market.

Monetary securities such as stocks, bonds and mutual funds hinge predominantly on market trends.

Moreover, the returns from stock investments or share trading are too cryptic and unsettled.

As the inflation goes up, the value of fiat money declines with it with negative returns and losses sallying over us.

Perusing the historical records of gold, its price has never depreciated, on the contrary it has ever exponentially elevated.

Rates of gold have burgeoned to four times since the last decade with marked progress.

Therefore, gold stands as a trustable asset in terms of security and returns.

Also Read: Difference Between Hedge Fund, Mutual Fund and ETFs.

2. High liquidity of gold

Worth of gold is acknowledged not only in India but across the globe. Investing in Gold offer high liquidity, i.e., are readily convertible to cash.



It can be vended off at any jewellery store, pawnbroker’s shop, private dealer or even online.

Owing to its ubiquitous demand, it does not require any middlemen to auction the gold for cash.

Its liquidity is even higher than those of stocks and other monetary instruments wherein it takes about 3 – 4 working days for transferring the cash return from stocks and shares to the bank accounts.

3. Gold holds its value for a long time

The currencies have faced decline in their power, however, gold has not encountered any deficit in its worth as a valued currency.

Price of gold is not volatile rather it remains approximately unchanged or shows remarkable surge in its value.

Contrary to this, share market or other such instruments of money which are highly fickle and unpredictable in their outcomes.

Thus, investing in gold becomes an ideal alternate especially regarding long- term financial objectives.

4. Gold will always have value

It has never been in the past that gold has become insolvent. Gold will always have worth it can never be nullified or sunk into negatives.

Gold ownership does not require extensive paperwork deals or middlemen.

Owing to its monetary merits gold becomes the preferred last resort in case of crashed economies or bankruptcy.

It delivers appreciative gains when liquified.

5. Hedge against a disaster

Having actual gold is proffers immense advantages.

Especially, in the times of financial crises or when the money market crashes it saves your investment portfolio from boycott if you have substantial gold investment mentioned therein.

6. Valuable tangible asset

Gold is one simple to get and valuable physical asset. This yellow metal is a rare product of nature and is limited in its supply.

We cannot make it rather whatever is available has to be extracted from the earth.

This is one of the reasons of its constrained reservoir and high value.



Moreover, gold is easy to purchase as compared to other tangible assets and is convenient to store.

7. Invest with privacy and anonymity

One can invest in gold while maintaining your privacy. Another perk herein is that gold investments are not taxed in their physical forms.

The Average number of deals cannot be traced back to their sellers or buyers.

8. For portfolio diversification

Investing in Gold is a safe option which enables diversification of your investment portfolio.

Gold secures one’s portfolio from adverse impacts of volatility and unexpectedness, common in other monetary asset categories.

It is usual that the price of gold hikes in correspondence with volatility and uncertainty of the market trends.

Thus, in addition to diversification of portfolio, it buys guarding our physical capital.

9. Risk reduction and wealth creation

Gold comes as a great saviour in the times of geopolitical crises and rescues you from equity and other fund losses.

This noble metal especially becomes ideal for long-term goals and gives considerable returns.

It remains as a silver lining in the moments of economic distress.

10. Gold investment as a buffer

Gold as an investment acts a buffer in case the economy of the nation faces any downfall.

It comes actively into its role of currency and buffers the investors from the shock of loss in other securities.

BOTTOM LINE

Gold is a noble metal which is revered for its qualities. It is widely used in making jewellery, trading, and investments.

Gold maintains it part as a good investment option owing to different reasons. It protects the investor from the volatility of market conditions.



Further Reading:

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