What makes physical gold a great investment option, even today?

Investors pumped Rs 491 crore in gold ETFs

Priyanka Iyer

The year 2020 has been a topsy turvy ride for all investors, as they went on to ride the crests and troughs of Sensex and NIFTY indices. Even as values of stocks and deposits have plummeted several times in the past few months, value of the yellow metal has steadily risen.

Even this week, there has been a 0.02% rise in gold value, as it reached a value of Rs. 50,660. The festive times have also been an auspicious time for buying gold. But the benefits of investing in gold, go beyond its good luck charm. Read along to know why investing in gold can be a great investment option, even in today’s times.

Tangibility

In today’s digital era, there is always risk of identity theft and hacking, when it comes to investments involving brokerage accounts, payment services or bank accounts. However, gold is an investment that is immune to these risks. With most of your investments as digital assets, having some investment outside digital form can be a great option.

Unlike paper assets, physical gold cannot be hacked or erased, which makes for a great investment option. Additionally, physical gold can be a great option for long-term wealth preservation that can out-last any currency.

Liquidity

Gold markets have always provided investors with the opportunity to profit in every environment – whether the market is bullish or bearish. As one of the oldest currencies in the world, gold can be easily traded.

Gold is often believed to be a means of generating income, while it is used to preserve ‘value’. However, it comes quite close to being used as a currency, all around the world. You can trade it easily, during times of need. It is highly liquid and portable, and can be easily converted into cash.

Easy to maintain and manage

Buying gold requires no special skills, training or investment expertise. Contrary to complex investment avenues that require constant monitoring. It is a straightforward investment, and its value usually grows with time. It is easy to invest in gold, and investors can choose to preserve its value for years. Gold is often handed over from generations, in the form of heirlooms. Despite fluctuations in gold prices, the value of this yellow metal has always been timeless.

In addition to the above factors, gold remains to be a preferred investment option today, as it can act as an emergency currency, during times of crisis. Even as returns on several investment avenues in turbulent times this year, went on to offer very low returns, gold continued to outshine several other investment avenues.

During times of systemic risks too, gold continues to be a safer investment haven. In fact, even when economic indices fall, gold prices have always gone up. Thus, gold can be one of the best low-risk investment options that can offer lower risks, higher safety and better returns than most other investment options. Thus, it comes as no surprise that investors continue to invest in purchasing the yellow metal and reaping the benefits of its skyrocketing returns.

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