10 Reasons to Invest in Physical Gold

Invest in Physical Gold

Is physical gold investment a good idea? Should you invest in physical gold? Read below to find out the answer on how to buy gold.

What is Gold, and How can it be an Investment?

Gold has been a valuable commodity for centuries. Gold has been used as a currency and a symbol of riches and power throughout documented (and unrecorded) history. This long-term value indicates gold's consistency and desirability throughout time. Investors believe gold to be one of the safest investments, as it quickly recovers its value during economic downturns. Its price often moves in the opposite direction of the stock market or economic fluctuations.

When investor confidence is shaken, gold prices generally rise as worried investors seek a safe haven for capital removed from the market. In times of inflation, gold is also a safe haven since it holds its value far better than currency-backed assets, which may arise in price but fall in value.

What are the 10 Main Reasons to Rely on Physical Gold Investment?

The 10 reasons to rely on physical gold investment are as follows:

1. Gold can Protect Against Inflation Risks

When it comes to investing, there is one factor you should always consider because it has the potential to ruin your investment in the long run. It is called inflation, but it is the rate at which money loses value over time. Given this, you should never invest in cash, as it will depreciate in value, particularly in a developing economy like India. Instead, consider investing in gold that will safeguard you from inflation. This is because the yellow metal serves as an inflation hedge in the long run.

Over the long term, almost all major currencies have depreciated in value relative to gold. But gold prices have doubled over the last five years and quadrupled in a decade. It has been observed that gold has outpaced inflation through time, and having some gold savings will allow you to lower your risk by a significant amount. Millions of people across the country buy gold and have made it their preferred investment, and you will never regret it in the long run.

You might try to comprehend the market by following the rates for a period of time. You can utilise online portals that provide information about such commodities to learn about gold price today on the market. This will allow you to keep track of market fluctuations and begin investing systematically.

2. Gold is Highly Liquid- Easy to Buy and Easy to Sell

Invest in physical gold as it is easy to sell and portable too. Physical gold investment can be made by purchasing gold readily from any jewellery store in your area. It is, nevertheless, wise to get them from reputable jewellers who can provide a guarantee certificate. Banks sell them as well, and you can readily obtain gold coins from them.

The most significant benefit of purchasing from reputable suppliers is that you will receive original quality without risk, as well as correct receipts for future reference. In addition, you can check the current gold price from reputable sites and buy gold from them.

When it comes to selling, you can go to your local jewellers because they will be the most convenient. Virtually any jewellery dealer in the world will recognize gold and buy it from you. Keep in mind that gold is constantly in demand, so you will not have to worry about liquidating your gold holdings.

When you sell them on the market to local jewellers or traders, you will receive immediate cash. If you do not want to sell them, you can put them up as collateral and borrow money from various lenders. When people have gold in the form of ornaments, they frequently pick this option and then repurchase it when they have enough money in the future.

3. Getting a Loan Against Gold is Very Easy and Fast

Life's emergency events are never predictable; therefore, you should always be financially prepared to face them head-on. You may rely on your gold investment in this regard because it is easily liquidated in the market. Likewise, if you have decorations, you do not need to sell them because banks and other financial institutions will lend you money against them in an emergency.

In most circumstances, a loan based on the whole worth of the gold can be obtained in a single day. After you pay off the loan, the banks will return the same ornaments in perfect condition. Furthermore, because this is a secured loan, the interest rate will be much lower than on unsecured loans.

4. Does not Require Much Maintenance

The nicest thing about investing in gold is that it doesn't require any upkeep on your part, and you may easily store it for hundreds of years. However, consider this: if you've invested money in a property, you'll need to keep it in good working order, which can be exhausting if you're working full-time.

On the other hand, you can buy gold and leave it in your locker for many years without having to worry about it. But, before you buy them from the market, check the price of gold online with many major hubs of India so that you are aware of the gold’s current market rate.

5. A Good Way to Save Money for Future

When you have a steady salary, saving money for the future is crucial. When you engage in real estate, you may not be able to invest tiny amounts of money. Invest in physical gold as it is a simple solution in this regard. This will help you save money for the future while also allowing you to earn significant returns in the long run. The best option is to purchase gold coins from banks, which come with a quality guarantee. Because it comes with a certificate of authenticity, you will have to pay a slightly higher price than the market rate for this item. When you buy gold from the market, this functionality will not be available. As a result, before purchasing gold from a local vendor, it is usually good to examine the gold rate in Delhi and other metros.

You should also make it a point to double-check the quality with reputable sources before deciding to invest in them. Ask them whether they would buy back the identical gold coins later whenever you wish to buy them locally. This is a good way to verify the source's quality, and you can sell them as needed in the future. Unfortunately, banks will not be allowed to acquire gold from customers at this time, though they may be able to make loans backed by this guarantee.

6. Price Stability is an Added Advantage

Compared to other market possibilities, the gold price is quite stable, and it does not drop by a significant amount even during a crisis. In fact, anytime there is a financial market crisis, people flock to gold as an investment, and prices skyrocket. Compared to the stock market, any stock price can drop to zero when the company receives poor news. This will never happen with gold, which will always have a market value.

This has been proven for ages, and investors have traditionally favoured gold due to its price stability. You may get the current gold rate from any source and keep track of it for several days. This will make it easier for you to understand price variations. Aside from that, you can look at the historical price of gold over a long period of time and see that it has always maintained a high level of stability, even throughout global financial crises.

7. Easy to Pass on to Next Generations

The physical gold investment makes it easy to pass it down to your children and grandchildren, as is customary in our country. As you can see, most individuals give gold ornaments to their children at weddings and other significant life events. This can also be a smart alternative if you wish to save money in gold to put it aside for future requirements. You can also gift them to your children while distributing your possessions, which will benefit them in the future.

It retains its lustre even after many decades, and its market value remains constant regardless of its age. In the future, you can even exchange it for new baubles from a variety of market vendors. If you want to replace your old jewellery with new ones, make sure to check the gold rate in Delhi and other cities so that you are informed of the current market price.

8. Best Supplement to the Stock Market and Real Estate Investment

While investing in the stock market and real estate can yield significant returns, they come with many hazards in the long run, and you should never put all of your assets into them. Instead, you should buy gold from the market to balance your investment. This will benefit family members because they will be able to use the gold as ornaments while also saving for the future. In addition, because the price of gold does not fluctuate dramatically like the stock market or real estate, your investment will be safe in the long run. This is a simple technique to diversify your risk, and it will provide you with significant profits.

9. Secured Investments when Compared to Other Assets

Gold as an investment offers dual benefits of risk-reduction and wealth creation. Even if there is no economic crisis or geopolitical tensions, the precious metal can still give decent returns in the long term.

When you acquire actual or physical gold investment, you do not have to be concerned about your investment fluctuating too much in the market. When you compare the current gold price to previous rates, you will discover that it is more or less constant when compared to other market assets. As a result, your gold will retain its worth in the market for many years, providing complete security for your future.

10. Does not Deteriorate with Time

This, unlike other assets like real estate, will not depreciate in the future. It will not lose its value as a result of its age, and even old gold ornaments will command the same market price as fresh gold ornaments. You may also check gold rates in Delhi and other major cities to confirm this and trade your old jewellery for new in the future. When you choose to acquire actual gold, your investment will yield good profits and long-term security. In modern society, this is also regarded as a prestige symbol, and you will be able to obtain good liquidity in the future.

If an economy's local currency sees any major fall due to macro-economic factors, gold provides investors with a cushion. For example, when India’s currency remained under acute pressure in 2013-2014, all major global currencies still supported gold prices in rupee terms. Thus, physical gold investment is considered one of the best investments today.

Invest in physical gold or buy gold and enjoy future benefits or security in financial terms.

Read More: Is Investing in Gold a Good Idea in 2021?


What is a good amount to invest in physical gold or precious metals?

In general, we view 15-25% of an individual’s wealth as a wise investment amount. This is, however, disputable. It is important to remember that this rule cannot be applied to all situations and if you feel you would prefer to invest more, then it is always wise to research and find out more.

How to identify if the gold is real or fake?

Buy gold from a reputed seller as it is a way to ensure its purity. You may also look for the official number marking on the gold to find if it is real or fake.

Is it worth investing in gold bars?

Physical gold investment is a finite universal currency held by most central banks, so the physical gold bars are worth holding.

What is the cheapest form of gold to buy?

Gold Bars and gold coins are best from this point of view as they come in a variety of sizes and a very less amount of making charges.

How much gold can be owned by a person?

According to the CBDT circular, a married woman can keep up to 500 grams of gold jewellery, an unmarried woman can keep up to 250 grams, and a male family member can keep up to 100 grams of gold decorations and jewellery.