Disadvantages of investment in Gold - Fusion - WeRIndia

Disadvantages of investment in Gold

Investment in Gold

In India, many people prefer to invest in gold whenever they can. It is common to buy gold for functions and other festivals. However, the past few years have resulted in zero or negative returns for those who invested in gold. It seems like gold is not the golden investment anymore. Here are some bad things about gold investment.

Jewelry

It is not a good idea to buy gold jewelry as an investment. This is because jewelry charges include the design charges and when you sell them, those charges are not considered. Also, they are made with 22 karat gold.

Gold coins


Making investments in gold coins and bars is bad because you get lesser amount each time you need to sell. Also, banks do not buy back coins and bars.

Gold ETFs

Due to the management fees the Gold ETFs may be slightly more expensive than physical gold.

No regular income

As an asset, gold does not provide any regular income. If you made the same investment in mutual funds, real estate, and stocks you would be able to generate dividends and rents.

Storage

Physical gold always has the problem of storage. Placing jewelry in a bank locker makes it practically unusable.

Image Reference: Wikipedia

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