Why investing in gold helps you build a better portfolio for your future?
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With the ripple effects of the pandemic still affecting the economy and markets, there’s always a question on everyone’s mind. Is there a safe bet that can increase my money exponentially and also doesn’t take too much of my time. So, is investing in gold better than other market options?
Most of us have day jobs that we go to (or now work on them from home) which don’t allow enough time for us to attend to our investments. While we’re attending to work, some event or mishap somewhere could lead to equity portfolio’s downfall. The market is always influenced by external factors and conditions. Even mutual funds have their own disclaimers that you need to be wary of.
In such a scenario and in such a time, investing in gold can cut uncertainty in the long run. If you would look at history, you will see that it’s not just the past few decades but for centuries gold as investment has always been a preferred choice of people.
In a market scenario of lower interest rates, ballooning budget deficits and safe haven demands, gold has provided some chart-topping returns, making it a lucrative investment option. Let’s discuss a few of these factors in detail to understand why Gold as investment is a must-make choice for a healthy portfolio.
- Investing in gold helps beat inflation
Investing in Gold can help hedge your portfolio against inflation and currency debasement. In unpredictable scenarios where other assets fall in value, gold prices usually remain stable. Also, while inflation erodes the value of rupee against dollar, the price of gold witnesses an increase. For long-term investors gold is an attractive hedge against inflation as it usually offers returns which are higher than inflation levels.
2) Gold as investment for wealth creation
As we saw in the last two years during the peak of the pandemic, the performance of gold remained quite stable. As new investors saw the equity and commodity markets crash, more of them started purchasing gold, raising its value further.
3) Gold as a safe portfolio asset
According to experts, investing in gold can help stabilise a portfolio. One of the main reasons for this is the lack of gold price’s dependency on other assets. In the long run gold works as a unique asset class which can help the investors get risk-adjusted returns from their portfolio.
4) Gold as investment is liquid
Amongst all other reasons, one that has always worked in the favour of gold is its easy liquidity. Gold can be bought and sold any time and easily. There is a huge market for physical gold, especially in India. It can also easily be handed down to family in the form of jewellery, gold coins, or gold bars.
At Kundan, we offer you a vast collection of gold and silver coins and bars to choose from, and assure you of the quality and finish. Our products are 99.9% pure and wrapped in tamper-proof packaging.