Gold - a timeless hedge against inflation? Maybe not! Read on to know why physical gold might not be the best investment for you.
Written by - Prathyush Gupta Designed by- Prince Kumar
Before reading further, please note this post is for informational purposes only. Please consult a SEBI-registered investment advisor before making any investment decision. Photo Credit: Pexels
Storage Issues Physical gold is expensive to store securely. Bank lockers or home safes add a layer of cost. Plus, Photo Credit: Pexels
Cost Issues Buying gold jewelry incurs making charges - a premium of 25-30% on top of the gold price! Photo Credit: Pexels
Purity issues Another concern with physical gold is purity. Especially for older pieces, You might be relying solely on the jeweler's word. Photo Credit: Pexels
0% interest Physical gold doesn't generate any returns while you hold it. Even a simple savings account offers interest! Photo Credit: Pexels
Better Gold Alternatives Paper gold options like Sovereign Gold Bonds (SGBs) earn interest on top of the gold price! Photo Credit: Pexels
Paper vs Physical Gold Paper gold offers numerous advantages. No storage worries, no risk of theft, guaranteed return and easy management through demat accounts. Photo Credit: Pexels
Gold vs Equity Investments are about returns. Over the past decade, physical gold (4.57%) has underperformed compared to Nifty 50 (12.8%) {source: Screener & statista} Photo Credit: Pexels
Limited Liquidity Finding a buyer for your gold might take time and effort. This lack of liquidity could be a drawback if you need to access your investment funds promptly. Photo Credit: Pexels
How does Gold Saving Scheme by jewellers work?