There are many investment options one can go for. A Savings account, Fixed Deposits, Buying shares, NSCs, and what not.

Though all of them have certain pros and cons of their own, there is a reason, why Gold is considered as the safest of them all. Moreover, the nickname for Gold, Safe-Haven, exists for a reason. Let us educate you more about why gold is still the smartest investment you can do today.

Demand and Supply

The demand of Gold has risen from past few years and it is more or less always on a rise. Gold is primarily used in making ornaments, gold coins, jewellery, and other adornments. It also has industrial uses like in electronics industry and dentistry but it not much in comparison to the former uses. Especially in our country, India, the value of gold is not just monetary, but religious as well. Hence, due to high demand and relatively less supply, investing in Gold is intelligent.

Liquidity

Another advantage of owning gold is that it can easily be converted into cash into any part of the world.  To understand liquidity in simple words, it means the degree to which an asset (gold in this case) can be quickly bought or sold in the market without affecting the asset's price. Cash, for obvious reasons, is considered the most liquid asset, while real estate property or art collectibles are most illiquid as they take time to find a buyer.

Gold acts as a hedge against inflation

Gold acts as a stand-alone asset which means that it is not another’s liability. Precious metals like gold are one of the few asset classes with a positive correlation coefficient with inflation. If you consider various kind of investment portfolios most of them don’t have any allocation to gold. As a result, they are not protected from inflation, but on a brighter side, neither are they balanced or diversified.

In conclusion, buying gold is a smart move. And if you don’t have any problem of physical space, buying gold coins, jewellery, etc is a good idea.