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The Top 10 Reasons to Invest in Gold

We at 24Karat make use of the KARATMETER which is only owned and used by some of the most renowned jewelers like Tanishq, Kalyan Jewelers and Reliance, etc. We are thepioneers of cash for the gold industry and thus, we have the most transparent way of getting the purity test of gold done in front of the customer’s eyes. As per the World Gold Council, even pure gold may contain some minimal amount of impurities which the manufacturer couldn’t remove. Fineness in a gold coin is defined as the weight of pure gold in proportion to the total weight of the gold coin, including the impurities.

buying gold is good investment

No middleman or other party is necessary to fulfill a contractual obligation. Gold is not used as a currency today, but its role as money makes it superior to any currency.

The gold prices often go up when the value of other assets like bonds and stocks falls. So, no matter if you buy gold onlineor buy it from a bank, investing in gold coins will ensure that you get valuable returns even during the low phases. This is a fairly important point from the investor’s point of view. Whether you hold gold in physical form or in ETF form, there is no regular assured income that you receive. The SGB, on the other hand, pays an annual interest of 2.50% to investors.

This is because the second jeweller pays only for the gold and not for the making charges, etc. that you paid to the first jeweller. But generally, gold coins do better on this front though practically speaking, you still don’t get the full value back in case you sell your gold coins. It is extremely essential to guarantee your purchase with a detailed bill from the jeweller you buy your gold coin from. Make sure that this bill mentions the vital details such as Karat, weight,the current price of gold per gram and making charges. You cannot buy 24K gold jewellery, but it is always possible to buy a 24k gold coin. Gold coins can be bought in various gold purities 23 Karat, 21 Karat, 20 Karat or 18 Karat.


Gold bars are rectangular pieces of gold, sometimes also referred to as gold biscuits, and are mainly purchased as a savings tool. is a part of ICICI Securities and offers retail trading and investment services. Gold has consistently proven to be a powerful inflation hedge. Gold prices are essentially unaffected by inflation, so you won’t lose money when inflation occurs, even if the worth of all currencies declines on the international market. Although the price of gold fluctuates in the short term, it has always held its worth in the long run.

So basically, the gold investment can start from a few thousand of rupees to lakhs and crores depending on your investment appetite. It has been used as a currency and has been considered as a symbol of the rich and powerful throughout documented history. Gold’s long-term value indicates its consistency and appeal across time. It is considered one of the safest investments by investors, since it quickly recovers its value during economic downturns. Its value frequently changes in the opposite direction of stock market or economic movements.

Although the gold in itself is not prone to fluctuations, but the inherent value it holds can never be zero due to its aesthetic value. Indians, in general, have a great affinity towards buying gold jewellery – from investments to special occasions, gold is popular in India. This article gives you an insight into the benefits of investing in gold coins. Purchasing shares in a gold mining firm might be a safer option if you don’t want to hold physical gold. Purchasing coins, bullion, or jewellery might help you achieve financial success if you think gold might be a good investment against inflation. The futures market may be your best option, but remember that leverage-based holdings come with risk.

Hence, it is critical to consider all risks before investing in gold or any other sector of the economy. This again produces an impression on people that gold fares as an investment in economic crisis. Unlike stocks and other investment avenues present in the economy, gold does not require the support of any business to stay afloat. The value of gold is unaffected by profits and revenues attained by that business. This makes gold a must-have asset during a downturn when stocks and other investment avenues are losing value during economic crises.

But gold’s intrinsic value makes it retain its status of a stable investment, whether it is in the form of tiny gold nose pins or gold coins. It’s a valuable addition to your investment portfolio if you evaluate its pros and cons. The investment in real estate comes with numerous tax benefits such as tax deduction on mortgage interest, operating expenses and legal costs, property taxes and depreciation.

However, for investment purpose, people mostly buy gold coins in either 22 karats or 24 karats. The symbol of luck, wealth and prosperity, gold is one of the most popular metals regarding both investment and sale in India. The precious metal is favoured not only for the flashy adornments but also for the savings and good returns on the money invested in it. Indian weddings and major festivals like Laxmi Pooja, Diwali, Dussehra, are incomplete without it and these are the times when most people buy gold in its purest forms.

The gold you are buying gets accumulated in a safe vault till the time you decide to own the physical asset. Conversely, when you sell, an equivalent amount gets deducted from your account. When it comes to investing, gold is an excellent asset-class with relatively predictable price movement. Demand for gold sees a rise whenever the economy is underperforming, and the stocks market is erratic. Investors prefer gold to hedge their investment against a crisis. Recently, gold investment has performed really well, generating around 40 per cent in return.

The Chinese and Indian governments’ demand for gold is helping to maintain the price of gold high. It’s crucial to understand some of the characteristics before you buy gold bars or jewellery. Gold prices took some support after the US fed rate hike came on expected lines. Gold traded at $1,890 per ounce in the international market whereas in India it traded at Rs 51,096 per 10 gram on MCX.However in India too,gold demand has been weak. India’s gold jewelry demand fell by 26 percent to 94 tonnes in the quarter ended March 31. Since 2010, barring the pandemic periods, this is only the third time that gold demand in the January-March quarter has dropped to below 100 tonnes.

Why this is a good time to buy gold

It can create a regular income flow while supplementing your portfolio with exceptional benefits such as tax advantage, diversification, and a less risky investment choice. Always measure the purity of the gold coin before buying to ensure that you get the best return on investment. There are two ways to measure the purity of gold coins – Karat and Finesses. Karat is a commonly used term with 24 KT being the purest form followed by 22KT that contains 22 parts of gold and 2 parts of other metals like silver and zinc to make it more durable. Finesse, on the other hand, defines the weight of gold in proportion to the total weight and is expressed in the units of part per 1000.

  • Although the gold in itself is not prone to fluctuations, but the inherent value it holds can never be zero due to its aesthetic value.
  • In fact, gold has been money longer than any currency in history.
  • The domain that was once restricted only to big players is now open to small retail investors as well.
  • On investments over Rs. 30 lakhs, a wealth tax of 1% of the entire investment is payable.
  • Now that you’ve seen how to buy gold online, you should consider investing.

If the cash flow is positive and the return than you will get from that property is good, then investing in real estate is worth. However, if you have access to the modern financial instrument with a variety of asset class, then you should not invest only in the gold. However, it is advisable to gain knowledge of financial markets before you dig deeper into stocks. Purchasing gold is much easier compared to purchasing other tangible assets such as real estate.

To invest in real estate, you will need to put down a significant amount of money. It can be an excellent long-term investment with ongoing passive income. In case the local currency of an economy sees any major fall owing to macro-economic factors, gold provides investors with a cushion. Gold as an investment offers dual benefits of risk-reduction and wealth creation.

Pros of Buying Gold as Investment

All over India, the prices range from nearly Rs.56,000 approximately. Yes; given the global economic backdrop of surging inflation induced by the Ukraine war and rate hikes by global central banks to cool retail prices from food to fuel and power. Dollar-denominated assets fall when the dollar strengthens, with demand falling as importers pay more for buying the same quantity.

buying gold is good investment

Therefore, 24 Karat gold is 99.9% pure, and 22 Karat gold is 91.66% pure. Because much of the metal is not used for any economic purpose other than jewellery creation, demand is not a function of genuine necessity. The mere possession of gold stocks does not entitle you to the metal. But there may be a possibility of rise in gold demand going forward. Gold sales on Akshay Tritiya surpassed the sales registered in pre-covid times by 25%, as per news reports. Gold ETFs are another attractive option for those who plan to invest large sums or trade at regular intervals as they offer easy liquidity and have no fixed tenure.

It usually takes 3 business days for settlement before cash can be transferred to your bank account or a check mailed. Virtually any jewelry dealer in the world will recognize gold and buy it from you. You can sell it to your local coin buying gold is good investment shop, a pawn shop, a private party, or an online dealer. Likewise, the annualized return of gold over ten years has been way higher than that of inflation. What this means is that gold has given individuals a real rate of return.

To make jewellery, the yellow metal needs to be conditioned; thus, there’s a depreciation in the gold quality. Moreover, in gold jewellery, some stones are added for ornamental reasons. Instead, you can invest in any jewellery brand to add to your investment portfolio. On the list of stock exchanges, jewellery business is publicly listed; therefore, it is a sound option for gold investments. Sovereign Gold Bonds are government securities that pay an interest of 2.5% per annum to the investors. By investing in Sovereign Gold Bonds, one need not worry about it being stolen, storage costs or even purity of gold.

Cons of Buying Gold as Investment

Many manufacturers also create a standard range of small gold coins from 1g, 2g, 4g and 8g . All gold coins minted in the Indian Government mint and sold in India are certified as per the Bureau of Indian Standards Hallmark. This means that when you invest in gold coins, you can be sure to get 24-karat gold with 99.9% purity.

Things To Know Before Buying Gold Coins

Hence, buying gold coins for investment lets you stay assured of good future returns. While other investment options might be risky, gold is relatively stable and you will always be able to protect your money in the long run. In this regard, let us carefully understand why buying gold coins is a good investment with the benefits explained below.