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5 reasons why you should invest in gold

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why to invest in gold

Invest in gold

Gold is a property that has been in demand for centuries. It has a benefit for investors since it has always maintained its purchasing power to invest in gold – throughout history, even now; But the way one buys gold has changed. Digital Gold has revolutionized gold investments in the way people buy and sell gold at unrestricted and affordable prices.

Here’s why you should invest in Gold: 

It’s highly liquid

Gold has used as a currency than any other currency in history, and although it may no longer use as a currency, it is easier to buy or sell when need. It is a tangible asset and has a very long-term value compared to any other currency or asset in the world. You can get credit against gold, without any hassle.

Also, digital gold has made the buying/selling process simple and seamless. Gold, real estate and FT investments cannot be immediately converted into cash. If you need instant cash, in any emergency, you cannot rely on these investment options. But, in the case of stocks, you can convert them into cash quickly.

It is 100% safe

When you purchase digital gold online, you will be assigned body gold stored in insured, certified lockers, and you can receive delivery of body units at any time.

This decreases the risk of theft or sav*ing hassles without worrying about the quality. You will get higher returns by investing in equity instead of investing in gold, real estate, and FDs. Long-term returns from equities range from 14-16%, while returns from FDs average 7%. Gold prices often fluctuate and are affected by factors such as inflation, GDP, and the political climate.

Hedge against inflation

The record of gold goes back over 5000 years and gold has given great returns for a long time. With inflation, when the value of the currency falls, the price of gold will be better. In the last five years, the price of gold has doubled and quadrupled in a decade.

Another benefit of equity investment is risk premium. The equity risk premium is the view of excess returns from the stock markets at a risk-free rate. This excess income will compensate you for taking a relatively high risk of investing in stocks.

Starts at a low price

What this means is that you can invest a small amount of gold, in the long run, to get higher returns – allowing you to choose a slimmer investment and investing the way you want to.

You would not think of investing in real estate without a large amount of capital. Similarly, to get higher returns from gold or FDs, you need to invest a large amount. But, in the case of equity investment, you can trade with a very small amount of capital.

Diversify your portfolio

When markets are volatile, gold is believed to be the safest bet. Experts believe that adding gold to your portfolio reduces risk because it has less contact from zero with other assets. It is also believed that there is an inverse relationship between gold and equities – that is, the value of gold rises as the value of the stock decreases.

  • You can set short-term capital gains against short-term capital losses and save taxes.
  • With the carry forward option, you can set your capital profits against capital losses for up to 8 consecutive years.
  • You can deposit in Equity Linked Savings Plans (ELSS) to save taxes under Section 80C of the Income Tax Act.


Hence, investments in stocks have proved track achievement of being better than FDs, gold, or real estate investments. When investing in the equity market, you should choose a reliable financial partner who can provide features such as an online Demat account, best trading account, and modern trading account with great recommendations.

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