Buying gold is good or bad idea? First, we need to understand is buying and holding gold a good way to save money or not?
The first cut answer based on previous performance of gold history is Yes. Buying and holding gold is a good way to save money. But there are some crucial things to keep in mind.
What all ways can we buy or store or hold gold?
Gold can be bought in three ways mainly,
- Gold Jewelry / Coin
- Digital gold
- Commodity market
These are the common three methods to buy gold. Majority of the people these methods is used to buy gold. The gold thus purchased is mainly used for mortgaging or exchanging.
If you have proper documents you can sell it easily.
Buying gold is good or bad?
Another thing is the labor cost, you can buy coin to avoid it but then there is another problem that coin cannot be pledged. Most banks and private finance do not take coins. (Some take it)
Digital Gold can buy mainly two ways,
First way is you can buy digital gold through apps like paytm and Google Pay. Whenever its coming to profit or depending upon your requirements you can sell it.
Soverign Gold Bonds
Second way is to you can buy soverign gold bonds issued by the RBI.
You can approach to nationalized banks or authorized dealers to buy soverign gold bonds. There is an 8-year lock-in period when buying an RBI bond. But there is an option to exit after five years.
This is a plan that earns 2.5% interest every year.
Depending upon your requirements you can choose appropriate once..
The third method is to buy gold through the commodity market. You can buy online through exchanges like mcxindia.
Many stockbrokers like zerodha are allowed to trade in the commodity market. But it cannot be stored for a long time. Must sell or take delivery upon expiration.
This is a way of making a profit as well as a loss as the stock market. Learn these methods more and invest carefully.
Buying gold is good or bad?
On March 31, 1990, the price of a pound was Rs 2,493. That is, at Rs 311 per gram, the price of one kilogram (one thousand grams) of gold is Rs 3,11,625.
On March 15, 2021, the price of a pound was Rs 33792. 4224 per gram. The estimated price of one kilogram (one thousand grams) of gold is Rs 42.24 lakh.
Suppose you are holding a thousand grams in 1990, (you can buy 3 Maruti 800 cars in 1990), and the same if you holding you can buy BMW X1 now.
The natural phenomena are when gold price increases the share market will be down and vice versa, so invest your funds wisely.
Gold prices are likely to fluctuate further. The main challenge is to increase the treasury revenue in the US. The threat of inflation may also cause gold to shine. The strategy to be adopted is to add a certain percentage of investment with each fall.
One of common advice, Never invests your entire savings in one place. For example, invest only a maximum of 10-20% in Gold and the rest in other sectors such as the stock market, mutual funds, fixed deposits, pension funds, PPF, real estate and postal scheme and consult yout financial advisor for investments.