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Thursday, October 10, 2013

Benefits of Invest in Gold

It was the time when Gold's value was Rs. 3 per 10 grams but after huge depreciation of  Indian currencies, value of Gold has reached Rs. 30,000 per 10 Grams. If you have invested your Rs. 3 in Gold in past time, now it will become Rs. 30,000 because Gold is pure and there is no effect of inflation on it. So, it is sure, its value will increase after sometime. So, to invest in Gold is good.



Following is the main benefits of investing money in Gold:-

1. To Use as Jewelry 

Gold can use as jewelry. When other assets, we will use, value of asset will decrease due to depreciation. But there is no chance of depreciation of Gold after using it as jewelry. Instead of depreciation, there will be appreciation if you will sell your gold jewelry after 10 or 20 years. So, this is the only investment after real estate which we can consume and value of same will increase after time.

2.  Good Return at the Time of Inflation 

When there is the time of inflation, value of currency will be down. At that time, like increasing the prices of other products and commodities, value of Gold will also increase because people will surely be interested to convert their cash money into Gold otherwise cash money will become zero. For example, 10 years, ago, you can enjoy your whole life with family just with the amount of Rs. 2000 but today, it will be very difficult for you to enjoy your life with same Rs. 2000. Why? All basic goods value has increased. But if you have bought the Gold with Rs. 2000 10 years ago, now, it becomes of Rs. 20,000. It means, there is no effect of inflation on Gold. You will get good reward after investing your money long term in the Gold.

3. To Carry is Easy 

To carry the gold is not so difficult. If you have bought Rs. 30,000 Gold coin (10 gram). It will easy to carry it instead cash. You can carry it anywhere in the India, sell it and settle your business. In other investment like investment in real estate or commercial shops, it will difficult for you because you have to sell it first and then settle in other place because other party may capture it.

4. To Diversify Total Investments

It is expert advice, you should not invest your all money in one project because if one project will fail, your all money will go down. So, it is better, if you diversify your total investments in different projects and businesses. To invest money in gold will be helpful to diversify the total investment  because there is no co-relation of share or currency market with Gold. Its price is affected from demand  and supply of pure Gold, so, if total demand will increase at limited supply, your gold value will surely increase.

5. To Get Loan on Gold is Easy

Few days ago, you have listened the news that Indian Govt. was taking loan from UK by giving his Gold on pledge. All the Govt. faith on Gold because Gold is limited worthy metal and there is always an international market for this. So, if you have gold, you will get loan from financial institutions because you have gold which you can give as security. Instead of Gold, if you buy the products of your business, it may less chance to get loan on your products.

Except above, Gold's today prices are shown by almost all the offline and online newspapers. There  is a website like multi-commodity exchange of India ltd. which shows its updates. You can see update price, if you are earning big money, you can take the decision to sell it and earn same money.

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