MuthootBlog

3 Reasons why Gold Investment is a smart investment

  • December 31, 2017
  • rootroot

From gold ETFs to stocks and physical gold, investors these days have numerous options of investing in the yellow precious metal. But why should one invest in gold? While some people believe that gold is a relic that should not be treated as an investment avenue, other hold fast to the thought that gold is an asset with a number of intrinsic qualities, making it a unique option for investment. This does lead to a fair amount of confusion that begs the question – Is gold a safe investment option? The answer to this would be a simple and straightforward yes. However, let’s get deeper into the benefits that one has when investing in gold.

Gold preserves wealth

One of the major reasons for the importance of gold in the modern economy is the fact that it has proved to be an excellent way to preserve wealth for thousands of generations. It just isn’t that easy to spend gold, a thing that cannot be said about paper-based currency. If you have a decent amount of investment in gold, it is safe to say that you’d be keeping it safe for quite some time to come.

A hedge against inflation

That gold helps preserve wealth finds even more importance in the economic environment of today where rising inflation dominates the scene. As history stands testament, gold has always provided a hedge against inflation, owing to the fact that with rising inflation, the price of gold also appreciates. When money starts losing its value, this hard asset holds its own.

Diversifying investment

People have a number of investment avenues that build up their portfolios and provide them a protection against hard times. The sum of the aforementioned reasons to invest in gold is that this asset can act as a diversifying investment for your portfolio.

Different ways to invest in gold

The best part about owning gold is that it isn’t just limited to owning physical gold. For the savvy and interested investor, gold offers numerous avenues to benefit from the numerous advantages of this asset. Some of the most common ways of investing in gold are:

  • Gold Futures
  • Gold Coins
  • Gold Companies
  • Gold ETFs
  • Gold Mutual Funds
  • Gold Bullion
  • Gold jewelry

Every kind of investment comes with its own set of advantages. What you choose mostly depends on you. If you are interested in having physical proof of your gold investment, ETFs or shares of a gold mining company won’t be for you. You would do better with investing in bullions, coins, or gold jewelry. On the other hand, if your interest primarily lies in leveraging gold to profit from the rising prices, you should definitely invest in virtual forms of gold like ETFs or the futures market.

Share on FacebookTweet about this on TwitterShare on LinkedInPin on PinterestShare on Google+

Leave a Reply

Your email address will not be published. Required fields are marked *

WHY US

We are India's No.1 - Most Trusted Financial Services Brand, according to the Brand Trusted Report, 2017 & 2016 consecutively. We are also the largest Gold Financing Company in India in terms of loan portfolio, according to the 2015 update to the IMaCS Research & Analytics Industry Reports, Gold Loans Market in India, 2015 ("IMaCS Industry Report, (2015 Update)"). We provide personal and business loans secured by gold jewellery, or Gold Loans, primarily to individuals who possess gold jewellery but could not access formal credit within a reasonable time-frame, or to whom credit may not be available at all, to meet unanticipated or other short-term liquidity requirements.

  • 25000

    Employees

  • 4500+

    Branches spread over 21 states and 4 Union Territories

  • 6 million

    Customers in our portfolio

  • 131 year

    Existence