It’s natural and even very important for an investor to check whether an investment in a particular asset is a good investment or not. More sensible in the case of true for gold. In India, people hold the gold for their future plans like marriage & other cultural rituals, convert black money into physical gold or gold certificate, and other personal financial goals depending upon ambition.
As a being of entrepreneur/ service class person,
Why would you invest in gold?
- Use as a currency.
In the global market gold is the only currency that has completed around 3000 years in the global market. It has the longest currency track record as compared to other currencies. In the global market there other currencies are available which has more value as compared to gold. But if we compared the track record of gold vs other any currency, gold has more long-term holding value.
Keep in mind that gold always has some value & you sell it when you need currency. That is the reason you need to add gold investment to your portfolio.
- Inflation Hedge
As we all know, inflation rises, the value of the currency goes down. Except for gold. In long run, almost all currencies depreciated over the period of time but the gold price increases. Also when inflation rates exceed the interest rate the saving instruments may not pay well, but gold pays the fare amount. This is how gold acts as an inflation hedge.
Keep in mind that, Gold has its own real rate of return.
- No specialized Knowledge is Required.
Buying gold is way much straight forward. No training, equipment, tools & tackles are needed to recognize the gold. As nowadays we can buy gold in physical form or in digital form as per our storage & security requirements.
Other Benefits like you can take the loan against gold, easily transferred to next-generation, a value never affected due to geopolitical tension, easily liquified in any shop, best replacement of stock & real estate market investment and does not deteriorate with time,
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Conclusion:
Make your financial profile more diversified. Because if inflation occurs, the value of your equity-based investment goes down but the value of gold arises dramatically.
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