Why Buying Physical Gold is a Smart Move?

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08 min read

Gold, the precious metal, is considered precious in Indian society. Irrespective of gender, gold has held a special position in describing tradition and culture. Purchasing gold is considered auspicious by most of our country’s traditions. At the same time, sovereign gold bonds do not give the same satisfaction to most of us.

It is even better if you are considering gold as an investment option. Here are seven reasons why buying physical gold is a smart move.


1. No Need of Special Knowledge

When you invest in mutual funds or stalks, you need to research the available options and understand how the market works for good returns.

On the other hand, you don’t need to research or have special knowledge to invest in gold. Simply buy gold based on the amount you are ready to invest. It is a very straightforward investment option.

2. Easy to Buy and Sell


You can buy gold conveniently at a trustworthy jewellery store near you that issues a certificate regarding its purity. Also, many banks and post office branches sell gold coins that come with ensured quality.

When it comes to selling, you can approach any jewellers near you. Gold has never once gone out of demand, and selling it will be a hassle-free task. You will receive instant cash when you sell gold.

3. Gold Loan Option

When you are financially distressed, you can pledge the gold and get cash to cater to your emergency. This seems a better option in the case of gold ornaments rather than selling them off. This is because once you pledge the gold, you can repay the loan within the repayment period and get the ornaments back. Gold loan is ideal if you have an emotional connection with the ornaments.

4. Heritage and Inheritance

Purchasing gold ornaments can be seen as a sign of heritage and culture. The design of the ornament indicates the period’s trend. Many families pass on ornaments to the next generation as a token of love. Even after decades, the designs will be appreciated and treasured. It is no less in terms of value. You can proudly pass on the gold to your future generations if you buy it now.

5. Low Maintenance

Say you invested in real estate. You would have to spend some money from time to time to maintain the property. However, this is not the case with gold, especially with gold coins. You buy it and keep it in a safe for as long as you want. The maintenance cost is not noteworthy in this case.

6. Immune to Inflation Risks

Instead of investing in any other investment instruments that are susceptible to inflation, it is recommended to invest in gold or any other safe assets immune to inflation risks. Historically, gold has outperformed the inflation rate, and there is reduced risk and a huge margin to invest your savings in gold.

7. Price Stability


Compared with the price of stocks and other commodities, the price of gold has been rather stable in the market. As we have witnessed, the gold price did not drop drastically, even though the COVID-19 crisis and lockdown. Even the historical gold prices have shown that gold has never been out of trend and maintained its price stability.

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