Get US Stock Advice From Award-Winning Advisor Rick Holbrook
Get US Advisory
Investing Related

Should You Invest In Gold In 2021?

Read this blog to know if you should invest in India's favourite asset, gold, in 2021. Find out more about digital gold. Learn how you can use Cube to buy digital gold.
December 16, 2020

Schedule a call based on your convenience. And get an expert to help you invest.

Top 5 Reasons To Try Our Powerful Investment App!

  • High Quality MFs
  • Top Notch Stock Advisory
  • Expert Financial Advisors
  • Alternative Investments
  • Low Minimum Investments

Indians often purchase gold not just for the high value it has but also for auspicious reasons. However, this year has not been the same owing to the Covid-19 pandemic.


The fluctuation of gold prices during this year has left investors unsure if they should invest their money in the upcoming year. Some investors seem anxious considering the low-interest rates and high inflation rates. 


On the other hand, some feel that the value of gold overcomes these factors and provides a greater return. Let's explore what is the right decision for you. 


Benefits & Risks Of Gold

3 Benefits Of Buying Gold

1. Protect against inflation risks

Over the years, gold has served as a strong hedge against inflation. It has shown positive outcomes during economic turmoil and market volatility. It also allows the investor to diversify their portfolio.

2. Upholds core value


Gold is known to uphold its value through the years. Its true value remains less affected even when market prices reduce; making it a beneficial investment.

3. Easy to get loans against

In the case of a personal financial emergency, instead of selling your gold in a hurry, you could receive a loan from a bank against the gold you own. This is a secured loan and the interest rates would be lower as compared to a general loan. 

3 Risks Of Buying Gold

1. Storage & Security

Due to the high value of gold, storing gold in a secure location is usually an issue investors face. Keeping it in a locker means that it is not easily accessible to you and storing it at home is a risky option. Additionally, banks even charge a yearly maintenance fee that investors may not want to spend.

There is always a risk of gold being stolen or lost. This adds another factor that investors would have to take into account when purchasing physical gold.

2. Making Charges

When buying gold from a jeweller with no intention to wear it as jewellery, you would be paying a hefty additional fee that can be easily avoided. 

3. No passive income

Gold is an asset that does not give regular interest or profits unless it is sold. Investing in stocks, mutual funds, p2p lending, etc. would allow an investor to earn passive income, making it a financially smarter investment.

But there is another efficient way of investing in gold. Read on to know more.

Why You Should Buy Digital Gold?


Investment platforms like Cube Wealth allow you to buy gold online in any quantity you’d like with the assured purity. This is known as digital gold.


  • The gold bought online is stored in an insulated safe for a fee. You have complete control and can decide to withdraw it or sell it off. 
  • Buying and selling of gold has never been made easier. You can even purchase fractions of gold, anytime you like and from anywhere with just a few clicks!
  • There is always a looming concern and risk of the possibility that physical gold could be easily lost or stolen
  • Additionally, if you're not planning to wear gold, there's no point paying the jeweller's making charges.


How To Buy Digital Gold


The Cube Wealth app allows investors to buy digital gold in the easiest and most efficient manner. Cube has partnered with SafeGold to allow you to buy gold in the safest and most transparent way. 


Every gram of gold you buy is backed by physical 24K gold and can be sold back at any time. The gold purchased will be kept in a secure vault under your name, backed by Brink. 


You can even start investing with just ₹1000! Download the Cube Wealth app or speak to a wealth coach to know more about investing in digital gold!


Top 5 Reasons To Try Our Powerful Investment App!

Schedule a call based on your convenience. And get an expert to help you invest.

  • High Quality Mutual Funds
  • Top Notch Stock Advisory
  • Invest in U.S. Stocks
  • Alternative Investments
  • Low Minimum Investments
Try Cube’s Exclusive Wealth Concierge Service! We offer a 10-minute portfolio analysis and set up service to select users.

Similar Posts

Calculate your
SIP returns

Calculate your
Lumpsum returns

Grow your money without wasting time

on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!