Jewellery is fine, but investing in gold is only done by the generation of grandparents. Do you also think so? Let us give you 5 reasons why you can't stop yourself from investing in gold.
Gold has the ability to preserve wealth, especially when the economy is down or there is a war or natural calamity or a political crisis. When all assets are affected by classes, the value of gold remains and sometimes the value of gold increases. So if you want to keep your wealth, you can trust gold.
So far you must have understood how important it is to diversify your portfolio. Then why not consider including gold in your portfolio? Gold performance depends on other asset classes like stocks or real estate. If you include gold in your portfolio, you are reducing your risk and protecting your wealth. Gold also offers liquidity. If you have gold in your portfolio, you can change it into cash anytime. India has an established market for gold which includes jewellery stores, banks, and specialised gold dealers.
When looking at the capital appreciation in the long term, gold has a good track record. In the short term, gold prices keep going up and down. But remember, the demand for gold in India is always strong. It has an increasing population and an increasing number of disposable income. This means that if you invest in gold, you have the potential to make good returns in the long term.
Expensive means invisible tax. Let’s understand this better with the help of an example: Suppose you have saved ₹ 1 Lakh and in 25 years, according to the 6% inflation rate, its value will decrease and remain at around ₹ 22,000. One can beat inflation by investing in market instruments that give a higher annual return, such as equity and gold because historically both the assets have given inflation-beaten returns. Sovereign gold bonds give a 9.5% annual return, which is more than the average inflation rate of 6%.
You can apply for sovereign gold bonds on the Upstox App. And yes, according to the RBI, you will also get a 50 rupees discount per gram on online application. Click to read more about Sovereign Gold Bonds: https://help.upstox.com/support/solutions/folders/278074
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