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5 Reason to Invest in Gold in 2022

5 reason to invest in gold

Gold Basic features

Gold is the most popular precious metal with chemical symbol of “Au”, and atomic number of 79. Like silver it has multifarious usage consisting of coinage and jewelry.

It appears in different forms like: nuggets, dust, veins, and alluvial deposits. It requires a boiling point of 5173 °f to melt gold and addition of alloys like copper, nickel, etc. to calcify into physical structures like bullion. It can be used as a medium of stored value.

Therefore, due to this importance and gold standards, gold provides a basis for monetary policies and is connected to different imagery presentation and beliefs. Gold has diverse usage and investment happens to be a major relevance of gold.

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Gold and its usage

Gold is used as a monetary exchange. Used globally as an avenue of monetary exchange by issuance and identification of gold coins.

Gold can also be stored in the form of gold bars and bullion and used as an hedge against price fluctuations.

Jewelry:  Due to the malleability of gold, it is often solidified using compound of alloys to change its hardness, melting point, color and ductility – capable of being formed into wire and other materials for onward use as jewelries.

5 reason to invest in gold

 5 Reason to Invest in Gold

The above are some of the uses of gold and it is by no means exhaustive. Among the reasons mentioned, investment is the most popular. Why? As already mentioned, gold is used as a means of hedging inflation.

With the gradual decline in the world economy that has overwhelmed even the strongest financial organization, one is therefore pushed to embrace the opportunity available in using gold and other precious metals to hedge inflation.

1. Inflation Protector : –

let first know what is inflation ?

» Inflation means rising in the price of goods and services during the time period. We can observe it,

price of a milk,butter,vegetables,metals are very high in comparison of before 10 years price. It cause due to declining in the value of currency in a country.

Inflation is a devil who is  eatting are saving by decreasing there value.

What this means is that an individual can put his or her money on gold as store away wealth for a period of time without fear of liquidation, to ward off possible states of bankruptcy. For example, in the past 170 years the price of gold has been increasing; in 1980 when the price of gold was $612/oz, an investment of $20,000 will yield a whooping 225% returns on investment if it was sold this past October’s price of $1379/oz. If this is not a good enough reason to invest in gold, then what is?

Current price of 10 gram gold in 2022 is 49000 rs. Imvestment in gold protects you from the high rate infaltion.

According to a study, due Corona virus attacks governments prints huge notes due to which it is estimated that inflation will increase higher rate form the prvios year.

2.Safe investment

Gold investment is very safe investment becaause in the 100 years history. Gold is increasing constantly there are very low chances to face loss in long run.

3. High Liquidity

liquidity means conversing power into cash. Gold can be converted into cash very easily whereas investment in land like assets are very hard to convert into cash fastly.

Therfore, in the emergency period we can easily liquidate gold.

4.Easy to get loan against gold

It is very easy to take loan against gold. Gold loans are very easy and there are two benefits because gold loan is very secure therefore rate of interst is comparatively low.

Gold price will increase by which in long time some amount of interest will cover from it.

5. Stability in Price of Gold

Gold price fluctuation is very low in comparision of stock market. Price of gold is stable due to which there is no panic situation during in the condition of depression and in condition of prosperity

Type of gold we should invest

There are three ways to invest in gold : –

  1. Physical gold
  2. Digital gold
  3. Gold bond

1. Physical gold

Investing in physical gold is a traditional method to invest in gold. But in this method ther are various problems to investing these are : –

  • 3% GST occurs due to which there cause a loss
  • Lack of security(there is chance of theft and other losses)
  • Some charges takes place like building charges etc.
  • There is a chance of fraud from traders.
  • No Interest received

2. Digital gold

digital gold means gold which is not in physical existence. you can buy digital gold from various platforms like phonepay, paytm, upstox etc.

  • 3% GST occurs
  • no issuse on security
  • No chance of any fraud
  • No Interest received

3. Gold Bonds

Gold bonds are issused by RBI (Reserve Bank of India) on the behalf of government. These are issued at 1gram of gold price and multiples of them.

  • No GST occurs
  • good security, due to digitalisation there is no danger of physical loss.
  • Interest received by a fixed  period of time

So, here we get it Gold bonds are better than physical gold and digital gold. Gold bonds are issued by RBI due to this it is secured and safe.

Summary & Conclusion

In this article we learn about the gold, 5 reason behind the investing in the gold which are : –

1. Inflation Protector

2.Safe investment

3. High Liquidity

4.Easy to get loan against gold

5. Stability in Price of Gold

Types of the gold for investment : –

  1. Physical Gold
  2. Digital Gold
  3. Gold Bond

Gold bonds are better than physical gold and Digital gold because there is no GST and also give interest on your investment.

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