Investment is an important part of our life. Investment and savings are the backbones of old age. The importance of Gold Investment we get from our ancient people.
The Gold investment is popular in India. It plays important role in life. The ancient people say “Who has Gold, Then he can survive life easy.
In this article, We will see what is the truth of the Gold Investment, and Investing in it is a good or bad idea. Investment in Gold can create wealth for us in the future.
Every Investor’s dream is to create wealth. We think Investors can create wealth by investing money in Gold. I think “The History repeats itself” that the reason for encouraging you to invest in it.
Many Investors and who have money in the hand they invest their money in Gold by purchasing the Gold in one time. and hold for a long time and History says who has held for more than 10 years it has created wealth.
But, You don’t have much money to purchase that gold at one time then You can do SIP in Gold. The Big and Smart investors follow this rule in investing plan.
Investing in Gold is a good or bad idea?
As we all know Gold is a value able thing. It is seen as the best investing option from the ancient period. While some people in today’s world think It is a bad Investment. Let’s clear the doubts and see what is the truth?
According to me, Gold Investment is a good idea. While I was thinking that it is bad for investing. But when I was analyzing the history of Gold then I got that It is giving the best return than FDs, Mutual Funds, Index Fund, and much more low-risk investments.
Investing money in Gold is risk-free, It comes in low-risk high returns. That’s the reason, In today’s world “every country has the Gold FDs ( Gold reserve )“. The importance of it we can get from the above statement.
Therefore, It can be a good idea of Investing in Gold. I hope you have got the answer realted to the question “Is investing in gold is good or bad idea”.
What are the advantages of making an investment in Gold?
The advantages of investing in gold as follow:-
can be started with a small amount
The important thing is that you can start investing in Gold with a small amount also such as $1000 ( Rs 50000 ). If you want to invest smaller than we recommend you to buy 10 gram Gold per year and be regular with this investment ( 10 gram Gold per year ).
The invest will be the best investment for you. Therefore, Gold Investment can be start with small amount also.
Risk free Investment
The Gold Investment is risk-free. The price and the Value of Gold are rising from the beginning. The trading of the commodity depends on Gold a Gold reserve is followed by every country. So, If the price of Gold falls then Inflation will also fall.
No investment is risk-free as like as Gold Investment. The FDs and savings account is also risk-free investments. But, We don’t have anything in hand. While By investing in Gold the Gold is in our hands. So, Gold is a risk-free Investment.
Gold is inversely have correlated with the Stock market, Commodity Market., and currency. It means the Gold movements are opposite of the Stock market, Commodity market, and Currency.
To reduce the risk it is important to diversify the investment. The Gold can easy converted into the cash.
Gold Investment can bet the Inflation. Inflation means the rates of the product is risking means Inflation is rising. But, You can bet by investing in Gold.
For Example:– If the salt price is 20/kg and the Gold price is $70 per gram. You invest in the Gold now and hold for 10 years. After 10 years the salt price is around 40/kg and on the other hand, the price of Gold has also raised from $70 to $150 per gram.
Moral of the example:- The thing you buy at one price, the price of that product will rise in the future. This is known as Inflation. So, to bet this If you invest in Gold then you can bet the Inflation.
You get tax benefits on Gold. You purchase gold you have to pay tax, not every year. You can claim long term tax benefits. In many countries the purchasing and sale of gold is tax-free or some countries take tax but a very little amount.
Easily converted into cash
If you face any problem and you have invested money in the gold then you can easily convert it into the cash. The Gold investment helps in such situation.
I hope you have understood the truth of the Gold investment. I have shared my thoughts in this article about Gold Investment. If you have any recommendations or feedback then write it down in the comment box below.