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| September 13, 2022

Top Reasons Why Investors Should Invest in Physical Gold

Gold is considered to be one of the most preferred investments in India as it has high liquidity and protects against inflation risks. Buying jewellery, coins, bars, gold-exchange traded funds, gold funds, sovereign gold bond schemes, etc. are just a few examples of investing in gold.

Unlike other investment options that might be risky, gold is relatively stable and you will always be able to protect your investment in the long run. Even if there are occasions when markets witness a decline in gold prices, it doesn't stay like that for long and the gold rate quickly rises. Since people have been investing in gold for centuries, you don't need to be an expert in finance to do so. Investing in physical gold lets you view the asset(s) you have invested in and store them the way you see fit. Even though there is digital gold investment the sense of assurance you have after seeing the gold in person and then investing in it is unmatched.

One of the best ways to invest in gold, especially in India, is the gold coin. People buy gold coins these days as it is one of the finest ways to save money. Here are 10 reasons to invest in physical gold.

Key Benefits of Investing in Physical Gold:

  • The fact that gold has been an effective means of wealth preservation for thousands of generations is one of the primary reasons for its significance in the current economy. Simply put, selling gold is difficult which isn’t the case with paper-based currency. It is safe to assume that if you have a sizable gold investment, you will be keeping it secure for a considerable amount of time.

  • When you have a regular salary, it's vital to save money for the future. Investing in physical gold is the most straightforward thing you can do in this regard. This will protect your funds for the future, help you earn significant returns over time, and have an investment that has high liquidity.

  • The fact that gold helps safeguard wealth takes even greater significance in the current economic climate with a high level of inflation. History demonstrates that gold has always served as a hedge against inflation since its price increases in tandem with growing inflation. This tangible item maintains its value even when money starts to depreciate.

  • Purchasing gold coins for investments is easier than buying jewellery. In contrast to other ornaments, it allows you to purchase gold in the purest form and with the least amount of weight feasible for a relatively low manufacturing fee. Additionally, due to great demand, you can always check the most recent market price and sell it hassle-free. If you don't want to sell, you can always put it up as collateral when applying for a loan from a reputed financial organization.

  • Unlike other tangible assets, you don't have to worry about maintaining gold to achieve the best returns. Gold coins can be safely stored at home for hundreds of years and sold whenever you choose at the current market rate. This is a big advantage of buying gold coins to protect your and your family’s future.

  • Compared to other products on the market, the price of gold is relatively steady and does not drop significantly even during a crisis. In reality, anytime there is a financial market crisis, individuals start investing in gold which quickly causes the price to surge.

  • Emergencies in life are often unpredictable so you should always be financially ready to face them head-on. Such scenarios justify investing in gold as it is simple to sell on the market.

  • While real estate and stock market investments can yield significant returns in the long term, they also have a number of risks. Acquiring physical gold, on the other hand, balances out that risk while diversifying your portfolio.

  • When you decide to purchase physical gold, you can do so with a sense of assurance since the gold rate won't vary too much in the market. When you compare the current price of gold with previous rates, you'll see that it is more or less steady when compared to other market assets. The price of your gold investment will be retained in the market even after many years, providing total protection for your future.

Every type of investment has a unique set of benefits. At the end of the day, the decision is yours. So, if you want physical proof of investing in gold, then the likes of gold bars, coins, or jewellery would be more profitable in terms of investing. Muthoot Gold Bullion Corporation's website and start your gold investment journey.

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