Do you also belong to that bunch of people who believe “why invest in gold” when there are so many modern investment options available? Although a variety of instruments are available, we Indians continue the legacy of placing trust in investing in this timeless metal. But the question is, why does this precious metal still hold value generation after generation? Well, the reason is not one; there are various reasons to invest in gold. And none of them are related to tradition. Due to its simple liquidity & financial security, it is considered one of the most reliable options.
If we precisely talk about gold bars & coins, they not only hold cultural or emotional significance, instead are strategic, smarter way to plan any investment. Whether it is planning for future security or its use in times of uncertainty, these tick all the boxes.
In this article, we will discuss the reasons for buying gold in the form of coins & bars, and you will get reasons why this metal should be in your portfolio.
1. Meant to shine forever, be it financially or physically
One of the main reasons to invest in gold is its never-decreasing value. Unlike other forms, like paper money, the value of which rises or falls due to the market situation. If you see, people who had invested in gold back then are now in profit due to its ever-rising value in comparison to the value of money. It still commands respect and a high price throughout the world.
You would be aware that these coins and bars don’t have any design, which is why they are free from jewellery-making charges. This implies that you are directly investing in the literal gold without paying for any aesthetics.
2. Protection against inflation
It feels disappointing to see the cost of living going up. Ever realised why that happens all of a sudden? The credit goes to INFLATION. One of the benefits of buying gold bars or coins is that they act as a safety net against inflation. It is interesting to note that there is a direct relationship between inflation & value of gold.
If you look at the history, during times of inflation, the prices of gold have only risen. So, if you want to invest your wealth and at the same time with no risks, gold should be in your investment basket.
3. Unmatched Liquidity
In contrast to long-term fixed deposits or real estate, gold provides unparalleled liquidity. Gold coins & bars can be sold anytime in case you need cash on an urgent basis. Additionally, these are easier to value and sell at the going rates because they are in standardized formats (particularly when you purchase BIS Hallmark Gold).
Due to its easy liquidity, it serves the dual purpose of long-term safe investment and workable temporary backup.
4. Purity you can rely on
The reason why BIS Hallmark Gold is considered reliable is its authenticity. It ensures that the gold you have purchased is pure, enabling you to trust its genuineness. It is of utmost importance for investors as how pure the gold is directly linked to its resale value.
Because when you are buying gold bars & coins with a stamp of BIS hallmark, apart from buying gold, you are buying trust. You won’t have to worry about whether you’re receiving a good bargain, and when you feel the urge to sell, purchasers are more inclined to pay you the price as per the market.
5. Have no making charges
You would know that when you buy any gold item, be it a ring, bracelet, bangles, and so on, the actual price of gold is less than the other items, like making charges, design costs, and several hidden add-ons. But in case of gold coins & bars, you don’t have to consider all these costs.
This means that you are essentially investing your hard-earned money in gold only. If you are seriously thinking about where you should invest your money, this is among the most compelling reasons for buying gold in these forms.
6. Internationally recognized asset
The value of gold is beyond boundaries. Whether you are in India or outside it, your gold will still hold value. That is its power, making it a globally accepted asset. While this is not the case in other investment forms.
Therefore, gold bars and coins make perfect sense if you travel frequently, move, or just like the thought of possessing something that is recognized everywhere.
7. Ideal for diversification
It is advised that you should not put all your eggs in a single basket. The reason is, diversification reduces the risk, and gold offers room for the same.
Other forms of investment, like stock markets, go up and down, real estate doesn’t allow you to use your funds as they are locked for a period of time, and fixed deposits don’t let you earn much. Out of all these, only gold is the stabilised form of investment, which makes it a good complement to any portfolio.
8. Symbol of security for the future
Gold is more than just an investment; it is a transfer of tradition in our country. Transferring gold bars and coins to the next generation means you are giving wealth that is never going to lose its value. While in the case of vehicles, electronics or precious items, their value depreciates over time and use, making gold stand out as the strongest gift for your kids’ future.
9. Can be stored easily
This is a good part about gold coins and bars, that as they are compact in size, easy to store, they don’t need lockers. These can be safely stored in bank lockers or at home with the right precautions.
This portability is one of the little-known benefits of buying gold bars or coins.
10. Safety net against uncertainty
Life is unpredictable. Geopolitical unrest, economic downturns, pandemics, and so on could turn your life completely. In times of such uncertainty, gold has consistently served as a shelter. It frequently increases in value, protecting investors from the impact of other assets that may decline.
There is no doubt that the price of gold is bound to rise in times of global crises. Having gold coins and bars guarantees that you will always have a reliable backup plan, no matter what.
11. Standardised & transparent price
When you buy any jewellery items, you would have seen that the bill has other costs apart from the price of gold. But in case of gold coins and bars, there are no such add-on costs involved. The current market price of gold has a direct impact on their value, ensuring a transparent & standard price. You get what you pay for, no hidden costs, nothing.
12. Supported by trusted dealers
While investing your money in gold, you would always want there should be reliability & trust in the dealers. Henceforth, it is essential to buy from trusted gold dealers in India. They guarantee genuineness, appropriate certification, and transparent prices.
Purchasing such precious metals from trustworthy dealers not only gives you peace of mind but also ensures your investment will hold good over time.
So, the bottom line is, why invest in gold when you have other options available? It is more than simply another investment, since gold is a globally recognized asset, cultural pride, and financial insurance all combined. Specifically, gold bars and coins catch the eye due to their purity, usefulness, and lack of extra expenses.
These are worth giving careful thought to, regardless of whether you’re new to investing or want to diversify your holdings. They are classic, reliable, and a testament to the fact that often the best investment strategies are still the most traditional.
