New Delhi: Investment opportunities keep coming in various forms- stocks, Mutual Funds, Debt Instruments, startup investments or real estate, but Gold still remains the safest commodity that guarantees consistent returns.
Over the past week, 10 grams of 24K pure gold had hit the Rs.1 lakh mark for the first time.Though it has slightly reduced by Rs.3,000, gold has consistently offered about 14% appreciation on a yearly basis. This is even as the stock market has grown by about 12% annually, though not consistently as gold.
Can any other investment class beat gold?
Even if there is, nothing beats the safety and insured appreciation of gold. Every government keeps a reserve of gold as a hedge against inflation or other economic uncertainties. Governments routinely issue currency out of nowhere for various economic expenses, and the gold reserves act as a safety net in case they can’t pay the same.
The demand and supply cycles will come and go, economies will go through recessions and boom periods, but the price of gold will always appreciate no matter how tough the times get.
On the other hand, investing in stocks requires some deep research and foresight- which most people don’t bother doing. No wonder just 5% of Indians own shares or related instruments, while 15% own jewellery as a safe asset.
Real Estate also remains an attractive investment, with about 86% owning their own home or about 50% owning a second home or commercial asset. Real Estate has many virtues similar to gold- it doesn’t depreciate, it offers contingency against emergency expenses and is an asset that’s cherished by the entire family. The biggest downside here is it can take a long time to sell, with a lot of documentation to deal with as well. Putting your property on the market can also mean investing in it to make it attractive to buyers- furnish the house, clear the clutter or even market your property to a niche audience- even then, there’s no guarantee that your property will sell on time and with the price you expect.
Gold, on the other hand, can be sold within a day, provided you have all the documents in order, just like shares. As you don’t need to learn or understand much while buying gold makes it an investment avenue for all audiences.
Is the gold price drop an opportunity that cannot be missed?
You can say so. But as gold prices will always keep rising, this correction can help you invest in gold-based securities or physical gold before prices reach the 1 lakh mark again. The time seems ripe now- geopolitical uncertainties, the US-led tariff war and supply chain chain disruptions have made investors migrate again towards safe commodities like gold which can almost never depreciate, make the most of this price correction before prices rise again.
