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.
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!
FAQs
1. Is gold a good investment in 2023?
Ans. The suitability of gold as an investment in 2023 depends on your financial goals and risk tolerance. Gold has historically served as a hedge against economic uncertainty, but its performance can be influenced by various factors, including inflation, interest rates, and geopolitical events.
2. What are the advantages of investing in gold in 2023?
Ans. Investing in gold can provide diversification in your portfolio and act as a store of value during times of economic instability. It can serve as a safe haven asset and potentially protect your wealth against currency devaluation and inflation.
3. Are there any disadvantages to investing in gold in 2023?
Ans. Gold doesn't generate income or pay dividends, so you may miss out on potential income compared to other investments. Its value can also be influenced by market sentiment and may not always correlate with economic fundamentals.
4. How can I invest in gold?
Ans. There are various ways to invest in gold, including buying physical gold (coins or bars), investing in gold ETFs (Exchange-Traded Funds), or purchasing gold mining company
Conclusion
Deciding whether to invest in gold in 2023 is a matter of individual financial circumstances and preferences. Gold has historically been a popular choice for preserving wealth and hedging against economic uncertainty. However, its performance can be influenced by various economic and market factors. Before investing in gold, it's essential to carefully assess your financial objectives, risk tolerance, and the current economic environment. Consulting with a financial advisor can provide valuable insights to help you determine whether gold aligns with your investment strategy in 2023.
