Gold has been a popular investment for centuries. From the king to the common man, everyone was attracted to this shiny yellow metal. Do we even need to comment on the amount of gold that’s part of Indian weddings? Though many of us believe that our older generations invested in gold for the love of dazzling jewellery or due to the lack of trust in the established monetary system, you’ll be surprised to know that there is more than what meets the eye. Let’s see why this precious metal thrives even today.
When it comes to sailing through volatility, Gold is the OG. In emergencies like war, gold has the potential to hold on to its value. That’s why our forefathers held gold coins for financial security. Unlike cash, which loses its value with a price rise, gold acts as a hedge against inflation. With rising prices, gold prices rise too! For example, the value of 10gm gold in 1980 was Rs.1,330 . Today, 10gm gold is valued at over Rs. 50,000 . Further, when the economy is down, the local currency depreciates, but the purchasing power of gold increases. We mean, can gold have its own superhero movie already?
Gold prices tend to move inversely to stock markets. Thus, gold can be a good hedge against market volatility. Smart investors use gold to diversify their portfolios.
In case you want to invest in gold, but are hesitant to do so because you are unwilling to sacrifice your precious tresses worrying about it being stolen any day, then we have some good news for you.
You can invest in gold online. You can invest in digital gold through gold mutual funds,
gold ETFs and even through sovereign gold bonds. The underlying asset for these investment avenues is physical gold. Digital gold investments have the scope to give you steady returns and could even be a source of passive income.
Whether it is investing in gold funds, ETFs, or bonds, this shiny metal will always have a place in a well-diversified investment plan.
Given the current geopolitical uncertainty, ongoing pandemic, market volatility, and climbing inflation, investing in gold may prove to be a smart move for investors. And let’s be honest, the brownie points you earn from your parents for investing in gold are a definite plus!
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https://www.livemint.com/money/personal-finance/how-much-gold-prices-have-risen-every-10-years-from-rs-99-per-10-gram-in-1950-11629513034631.html
https://www.bankbazaar.com/gold-rate/gold-rate-trend-in-india.html
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