Maintains value

Consumers like to purchase gold because it has low volatility. Stocks and equity funds can be highly volatile, which means that their value can fluctuate at any given time. Gold prices on the other hand, are generally more stable, which makes it a suitable choice for investors looking for a safe haven to park their money.

Inflation Hedge

One of the main reasons investors purchase gold, or add gold into their investment portfolio, is to use it as a hedge against inflation, because during periods of rising inflation, gold prices tend to increase whereas equity and bond prices tend to fall over the same period.

Ease of Liquidation

Gold has been the economic backbone of currencies the world over by way of reserves maintained by the Central Banks. In addition, the precious metal has deep rooted social, and emotional significance that makes it extremely easy to sell. Other gold instruments like gold ETF traded on exchange platform can assist to receive sales proceeds within 2 working days.

1. Gold ETFs, Stocks or Mutual Funds

To invest in Gold ETFs, you only need to open a DEMAT account. Gold ETFs offer many benefits such as allowing you to add gold to your portfolio without the challenges of investing in physical gold, and the potential of earning a profit when the price of the metal appreciates. Gold stocks may sometimes outperform gold bullion when gold prices rise, but it can be difficult to identify which specific stocks will outperform. Gold Mutual Funds offer an option to investors to invest in Gold without having to open a Demat account.

2. Gold Bullion Bars and Coins

Gold bullion is the easiest form of gold to precisely value and carries the lowest premium over spot gold prices; Investing in physical gold offers key advantages such as increased investment security and avoiding counter-party risk. For novice investors, buying gold bullion bars or Gold coins might be appealing since you can see and touch your investments, as opposed to other assets like stocks and bonds.

3. Gold Futures

Gold futures offer a leveraged way to invest in gold prices, but carry the added risk that comes with the fact that leverage amplifies both profits and losses – investors can potentially suffer losses that exceed their total investment capital.

4. Sovereign Gold Bonds

Sovereign Gold Bonds (SGBs) offers a better alternative to holding physical gold. The risk and costs associated are eliminated. The investor is promised the current gold price on maturity and periodic buy back at certain intervals provides liquidity while tax benefits are available to original investors primarily individuals holding Sovereign Gold Bonds on maturity.