One of the oldest currencies used on earth, gold continues to be a coveted precious metal even today. It not only has immense significance in the Indian culture but is also regarded as a strong financial asset. To say the least, it has effectively stood the test of time. However, does it make for a good investment to add to your portfolio in the year 2020? Well, here are some of the practical reasons that make it a suitable option for investment:
Easy to liquidate – Investments are mainly made with a future plan on mind and as a safety net in case of any future financial emergencies. Gold makes for one the easiest investments to liquidate in times of an emergency. The simple process involves selling the asset to a buyer of your choice and receiving money in accordance to its value. However, you must note that the value of gold does not remain consistent. It is solely driven on the current market price and the return rates can vary.
But still, it is the best option in a crisis is to sell gold rather than getting a gold loan. Getting a gold loan is a difficult, stressful and long process as compared to Cash for Gold which gives you 99% of the actual value.
Heirloom – Gold has held a special place in Indian households. The yellow metal is considered to be a big part of the Indian culture and is cherished by families. Thus, investing in gold is also a good way to carry on the legacy and symbol of wealth within the family.
Hedge against inflation – The gold metal has held a record for standing strong against inflation. In times of inflation when the markets are falling, the value of this asset remains unaffected. Even when the currency rates drop in the global market, your gold investment will prove well.
Relatively risk-free – The risk factor with investing in gold is almost negligible. While it involves the risk of losing out on buying other high-return investments, it is rarely affected by deflation. The rate of gold usually bounces back even when it drops low.
A gold fund is a simple and safe investment method for new entrants and well-established investors on the market. It may not bring you a continuous flow of income but is a onetime investment that can be liquidated or used for a gold loan to fetch good returns. However, you must not keep gold to be the only choice of investment. Distribute your funds into other means of fund growth such as fixed deposits, mutual funds, bonds and more as well to enjoy the best of returns.