Invest In Gold With Rich2Money
What Is Gold Investment?
Gold is one of the most preferred investments in India. High liquidity and inflation-beating capacity are its strong selling points, not to mention charm, prestige, and so on. Gold prices shoot up when the markets face turbulence. Though there are phases when markets witness a fall in gold prices, it won’t last for long, and always makes a strong comeback.
How to Invest in Gold?
The ‘golden question’ here is – how does one invest in gold? Traditionally, it was by buying physical gold in the form of coins, bullions, artefacts, or jewellery. However, there are newer forms of gold investments nowadays, such as gold ETFs (exchange-traded funds) and gold mutual funds.
Gold ETFs are similar to buying an equivalent sum of physical gold but without the hassles of having to store the physical gold. Hence, there is no risk of theft/burglary as the gold is stored in Demat (paper) form. Gold funds involve investing in gold mining companies.
While people in India have brought gold over for various reasons, usually cultural or religious, it has found appeal as an investment option as well. Here are a few things that work in favor of gold:
- Long-term store of value – For centuries, gold has been the best store of value for the long-term(store of value is an asset that maintains its value without depreciating). The fact that it can play the role of money adds to its superiority and its outperformance of the currency value make it attractive.
- It will always have value – Currency is a ‘promise to pay’. Gold, on the other hand, requires no such promise. It is the only financial asset that is not someone else’s liability at the same time. In its 3000+ year history, gold prices have never dropped to zero. Hence, it will always have value and stand strong even if the market collapses.
- Inflation hedge – When inflation rates rise, the value of currency drops. However, over the last five years, despite the rise in inflation rates, gold prices have doubled. In India, where inflation rates tend to exceed interest rates, investing in gold is a hedge against inflation.
- Liquidity – One of the most important features of gold investment is liquidity. Gold can be bought and sold in a very short time.
- No specialized knowledge needed – When you buy stocks or invest in mutual funds, you need some knowledge of the market and economy to make the right decision. With gold, no such knowledge is needed. It is simple and straightforward making it easy to invest in for all kinds of investors.