In India every 100kms traditions, customs, food and colloquial language change. This is what makes India very diverse from the rest of the world. There is one thing we find common across India is the love for gold. However diverse we all are, our love for yellow metal stands united. Having said this, many of us purchase gold not for the sheer reason to adorn them but also to amass wealth. Here are the 10 viable reasons why one should buy gold bars:
- Safe to Buy gold
In terms of war, conflict, riots buying gold in the form of gold bars is the safest option as it can be easily carried in & out of the conflict zone without hassle.
- Universal Acceptance
Gold bars shine everywhere with equal glitter. They are equally accepted across every country making it the most tradable commodity in the world.
- Emergency Currency
Gold coin sale has always been easy, widely accepted and a source of emergency currency. In countries like India, gold can be readily exchanged for cash making it highly liquid. There are hundreds of pawn brokers, small time Jewellers and goldsmiths who exchange cash for gold.
- Gold is Independent Asset
Gold unlike currency does not come under banking system and is not even monitored under any law in terms of buying. Example: High value transactions in currency are bound to come under scrutiny but gold purchasing, unlike currency is not so.
- Portfolio Diversification
Purchasing gold in the form of pure gold bars is one kind of portfolio diversification, considering it as another asset mix like the mutual funds, fixed deposits, PF etc. It is a great way to appreciate your assets.
- Default Risk
Unlike other investment avenues which come with default risk, market risk or risk of dilution etc, gold carries no default risk with it. Once purchased they are bound to carry the value for a life time.
- A Measurable investment
Physical gold can always be measured and is not linked to any market parameters, stock indices or government bonds.
- No taxation
Unlike any other investments gold bars or gold Jewellery does not attract any taxation and hence are major reasons why some people buy gold.
- Gold as collateral
Gold especially 24K gold bars are a major source of collateral through which a gold loan can be instantly approved with limited paper work and record approval time.
- The touch of Physical gold
Though we may acquire a lot of paper assets in the form of shares, bonds, mutual funds or land and building but intrinsically the real happiness of holding wealth can be given by only a gold coin.
Where to buy gold coins
The question of buying gold coins has always been a tough one as there are numerous options available in the market. But, there are few aspects that one should look into while purchasing such as:
- Availability of denomination of gold coin
- Availability of certified gold coins like hallmarking and Assay certification which gives credibility and a proper resale value while selling it back.
- Availability of embossing like Lakshmi gold coin, Ganesh gold coin (which is ideal for gifting or for pooja purpose)
- Availability of buy back which banks do not offer, only retail Jewellers do. They accept gold by way adjusting against customers purchase and not for cash.
One should look into the above aspects while looking to invest on a gold bar or a gold coin, also it is important to notice the quality of gold coins. Trusted Jewellers like Vaibhav Jewellers offer a range of specialty gold coins that are certified. They come with a Vaibhav Jewellers logo for the Jeweller to identify if the customer comes back with the coin, can be shopped on amazon or through their portal vaibhavjewellers with free delivery options across India.
As I sign off, I leave it to your wisdom to invest in the most precious metal and save a big pie for your future.