For long, gold has been the go-to investment option of people in India. The yellow metal has steadily grown in value over the years and also holds a sentimental investment value for people from every walk of life.
However, the recent shine of cryptocurrency has left the market and the newer generations with second thoughts about where to invest – courtesy the exponential value inflation of cryptocurrencies. While names like Bitcoin, Ripple and Ethereum have made a place for themselves in the investment market, gold still stands as the primary choice of Indian investors – and for due reason. Here are some facets about Gold that you’d like to know before you weigh in the pros and cons of different options:
In the times of financial crunch, liquidation of gold is nothing short of a savior. With a smooth process, it is fairly easy to sell gold for some instant cash. The return amount depends upon the age, design, purity and current market price of the yellow metal.
On the other hand, cryptocurrency sale is a hassle in itself. Since online selling is the sole market, the probability of scams and fake transfers increases. In many cases, the profile details of a buyers is not visible to a seller. Furthermore, it is not possible to take a bank loan against cryptocurrency, unlike gold.
Gold is accepted across the globe by jewelers, banks as well as stock exchanges. The import, export and the general exchange of gold is easier and requires no special tech knowledge or know-how of online wallets, trade patterns the common man to access. On the other hand, cryptocurrencies are not globally accepted. Moreover, cryptocurrencies are rather volatile, so your investment holding might not be valid, a few years or a decade down the line. For instance, there are a few countries like India which discourage the practice of cryptocurrency trade. It’s often speculated that such trades may lead to a rise in criminal offence in a country.
Gold has multiple physical investment avenues like bars, coins, jewelry, etc. Consequently, it makes the yellow metal usable in occasions like marriage and festivals – which makes Gold especially valuable in India. Furthermore, stock of premier gold companies like Rajesh Exports have also yielded heavy returns to the customer. For investors, that means a double-whammy since they can invest in gold and gold companies and yield profit on both, all the while diversifying their portfolio and making profit. The company’s stock registered a six-fold rise within 5 years. From August 16, 2013 to August 16, 2018, the numbers recorded a 561% growth (Rs 98.30 to Rs 630), clearly representing the reliability of gold.
Long term perspective
The Indian gold market has displayed consistency in accordance to the rising demand of gold since decades. Contrary to such stability, cryptocurrency’s one-year hype can be placed in the bracket of ‘the dotcom bubble’ from the past. Investments are future-centric and gold outweighs crypto in the long term. Reiterating the stock growth of Rajesh Exports, the returns were reaped by people in a minimal risk, maximum benefit environment. Having said that, there are no concrete facts that can comment on the stability factor of cryptocurrencies like Bitcoin.
These facts clearly suggest that the scales of reliable and long term benefit are tipped in the favor of gold. For a smart investor looking to invest practically and in long term options, Gold still offers a relatively safer and profitable option.