- by Admin
As a precious yellow metal that can be beautifully sculpted and shaped, GOLD has been one of the most highly valued, sought after and beloved commodities in the world. Buying gold and using it to symbolise power, beauty, purity and accomplishment has been a common practice for ages.
In the past few decades, gold has earned its reputation as a highly secure instrument in an investment portfolio. Especially, in these volatile market scenarios, buying digital gold or physical gold can help neutralize the effects of other high-risk investments by hedging the impact of inflation and unpredictability in markets. In India, more than an investment, gold is a culturally significant metal which has found a place in our hearts, homes and auspicious occasions. We as Indians consider gold to be the forever wealth and real money. Thus the new age option of buying digital gold online has risen as a safe haven for Indian investors.
Why Buy Digital Gold – The New Age Security
Gold has proven to be a secure and low risk investment commodity that can be purchased in Physical or Digital form. Physical gold can be procured in the form of Coins, Bars or Ornaments which involve some limitations with regards to storage, safety and maintenance.
However, in the ever evolving times of digitalization and with the pandemic having hit close to most markets globally, Digital Gold is the up and coming new age investment which provides investors with easy access and convenience, while maintaining purity & transparency of transactions. People looking to invest their savings in gold can now buy and sell gold online in the comfort of their homes without having to physically purchase or store it.
Investment in Digital Gold, in today’s market scenario is considered to be one of the best performing asset class with good predictable future returns due to its various benefits like:
- Highly Liquid Asset
- Low Risk Wealth
- Easy Buy & Sell Process
- Small Investment Value
- Tangible Asset & Wealth Building
- Diversified Investment Portfolio
- Neutralizes Impact Of Inflation
BUYING DIGITAL GOLD OVER OTHER INVESTMENT INSTRUMENTS
As an investor, there are several other investment options that cross your mind when looking for safe investment instruments that secure your savings and yield higher returns. It is essential to understand each of these options in this kind of volatile market scenarios and pandemic affected times. Apart from the evergreen and safer investment options like gold, some of the alternate instruments that most investors consider are:
These are complex financial products that involve diversified investment of the investor’s funds in equities, debts and other money market instruments. Such an investment requires a great deal of research, planning and vigilance on the investor’s part. Gold on the other hand is a high value, low risk, high liquidity investment asset as well as a functional commodity which reaps long term benefits and profits. Unlike Mutual Funds, buying gold online or offline is an easy, confidential process that does not require or involve any charges, intermediaries or documentation.
Fixed deposit (FD) is an investment of funds that guarantees a fixed rate of interest on your money, until the given maturity date. The interest rates vary for all banks, which in general is comparatively higher than that of a regular savings account. It is an ideal option for novice investors with low risk appetite as it develops a habit of dedicated savings in them. Considering both Gold & FD as long-term investment route, the performance of gold – Digital or Physical, is greater due to its high liquidity, the ability to yield higher returns due to instant price fluctuations and lower FD interest rates.
Although real estate is an asset class that may add immense stability to your portfolio and in some cases ensure regular return, purchasing a property requires a huge, well researched investment along with following intermediary and maintenance costs. Between Real Estate and Gold, due to its hedge against inflation, easy buying and selling process, portability and no contractual obligations or counterparty risks, gold in physical or digital form is a more secure and convenient long term investment.
SOVEREIGN GOLD BONDS:
Sovereign Gold Bonds are securities issued by Reserve bank of India on behalf of the central government, that are denominated in gold, with each unit being equivalent to one gram of gold. These secure debt securities offer fixed interest on the investment with a lock-in period of 5 years before yielding returns. With no such lock-in period, high liquidity and the liberty to buy and sell digital gold or physical gold instantly online or offline, gold overcomes many such challenges faced by investors.
INVESTMENT OF CHOICE
For ages, gold as a commodity has proven to be a fence against the economic and market downturns by providing stability to investors and their portfolios , balancing returns during economic downfalls and cycles, and letting them bask in the refuge of gold while other assets and investments struggle.
The scenario has been no different during this Covid-19 Pandemic. As per research and figures, Gold has been giving almost 100% absolute returns in the last 10 years, 15 % in the last 5 years and 20% in the past 3 years. Astonishingly, defying all odds and considering market fluctuations during the pandemic, gold gave a return of almost 28 percent in the year 2020.
Due to the ease, lower investment value, and basic internet & online payment platforms being the only requirements, Investment in Digital Gold has become the new and chosen avenue to invest in this precious metal for a lot of investors.
In conclusion it is safe to say, that gold will always be the choice of investors as it lets you serve both long and short term goals of investment with minimum lock-in periods and higher returns.