Read this before investing in Gold | Fusion - WeRIndia

Gold is one of the most ancient methods of currency, and has been used worldwide for millennia. It is considered perhaps the most precious metal in the world, and is certainly one of the most popular ones. India is well-known for its extreme fascination with this metal, and it is strongly prevalent in Indian culture.

For this reason, there are multiple ways to invest in gold in India, besides buying it physically. Normally, gold is simply used for safety in times of economic uncertainty, and its price is mostly dependent on its international value. These are some of the advantages and the disadvantages for choosing to invest in this precious metal.

The biggest advantage of gold is its advantage during hard economic times. When it is a part of a portfolio, it will grow during uncertain times, such as when the stock markets crash.

It can be easily liquidated, in case an emergency occurs. It also takes no time to liquidate, which is a large advantage over other instruments.

Another advantage of investing in it is that it does not require many documents to avail loans on it. Additionally, the interest rates on gold are much lower when compared to personal loans.

There are also many options for investing in gold. One such option to consider is a Gold ETF, which is a gold fund that tracks gold and its price.

One disadvantage of investing in this metal is that there is no regular income provided, apart from investments in gold monetization schemes. It also does not generate any dividend or rent.

The biggest and most well-known disadvantage of gold is its difficulty to store securely. It is one of the most sought-after materials in the world, and choosing to invest in it means that there must be tight security placed around it so that it cannot be stolen.

Another disadvantage of gold is that it is unwise to resell it after investing in it. Additional charges added to the gold for profit are not considered, and this can be very harmful financially.

Although there are options to help track the price of gold, predicting its price movement is a very difficult task, since it is influenced by the global economy.

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