Dhanteras 2022: 4 Reasons Why Gold Is Always A Good Investment
Know why it is a good idea to invest in gold this festive season.
Gold has been a big part of our Indian culture for many generations. For most Indians, especially women, the yellow metal holds a very emotional value. With the festive season approaching, many of us will be flocking to the market to purchase gold jewellery or coins on Dhanteras.
Dhanteras is considered to be an auspicious day to purchase gold. However, since the COVID-19 pandemic struck, we have all become very cautious about our financial decisions. So, is it still a good idea to invest in gold this Dhanteras? This answer is YES! Here’s why.
Reasons Why Gold Is Always A Good Investment
#1 It Is Easy To Liquidate
A major reason to invest a portion of your investible capital in gold is that it is very easy to liquidate gold. In case of an emergency where you are in the need of funds to make ends meet, you can just sell your gold investments in exchange for funds.
#2 It Is A Hedge Against Inflation
Gold has stood the test of time and has always proven to be a strong hedge against inflation. Over the last few years, gold has outperformed the rate of inflation, providing decent returns even during testing times. Hence, having gold in your portfolio can help you gain a hedge during market fluctuations.
#3 It Is Easy To Get A Loan Against Gold
In the event of an unfortunate emergency where you are in need of funds, you can avail a loan against your gold investments instead of liquidating them. You can easily avail such loans from banks or other financial institutions. Once you repay the loan, you will get your gold back from the lender. Such loans are secured and have lower rates of interest as compared to personal loans.
#4 It Is A Favourable Hedge Against Currency Devaluation
In case the rupee devalues due to macroeconomic factors, gold can provide a good hedge during such times. Gold prices remain stable during currency fluctuations and hence can provide good returns.
Should You Invest In Gold Jewellery This Dhanteras?
Most of us tend to believe that purchasing gold jewellery is an investment. However, we must not neglect the liabilities that come with gold jewellery or physical gold. Gold jewellery and physical gold come with the risk of theft and at a huge markup price. When you purchase gold, you must pay a 3% GST along with the making charges. These additional charges erode the actual value of gold, and you make not be able to recover these costs during resale.
So, purchasing gold jewellery may not be a smart way to invest in the yellow metal this Dhanteras. This festive season, it is time to go digital and invest in smart gold.
Digital Ways To Invest In Gold This Dhanteras
Digital forms of gold are hassle-free, valued fairly and are considered to be a pure form of investment. You can invest in digital forms of gold using the following instruments:
Sovereign Gold Bonds
Gold Exchange Traded Funds
Gold Savings Scheme
Gold Mutual Funds
Digital Gold
In Conclusion
Gold is a safe haven, and you must incorporate this yellow metal into your investment portfolio. So, this Dhanteras, don’t hold yourself back and invest in gold. Know more about the 6 Ways To Invest In Gold this festive season.
