Top 5 Reasons For YOU To Save Money In Gold
(Est Reading Time - 5 mins )
Saving in gold is not something new for Indians. It is an emotion for us. You must have seen your parents buying gold with their saved money to gift you on the occasion of your marriage. For them, it is like passing on the legacy. The real idea behind this is to protect you from bad times and give you the gift of security.
Gold has always been a popular precious metal in India. Because of its high demand and worth, its value rises over time, providing good returns and investment value in the long run.
You will be surprised but according to the World Gold Council (WGC) India's gold demand reached 191.7 tonnes in July-September 2022 showing an annual growth of 14%. Isn't that huge?
But it's not just about the numbers, gold offers a unique combination of stability, diversification, and long-term growth potential that makes it an excellent addition to any savings plan.
So let’s get started.
Why Should You Save / Invest In Gold Today?
1. You Can Hedge Against Inflation By Saving In Gold
As per a report by WGC, For every 1% increase in Inflation, gold demand In India increases by 2.6% which results in increased gold rates. So if you buy gold now, it will protect you against inflation in future as the value of your gold will increase. This makes it an attractive investment option for you to protect your wealth in the long term.
2. Saving Money In Gold Is Effective Tool For Portfolio Diversification
You must have heard from personal finance gurus that Diversification is the key to any successful investment strategy. Well, gold can play a crucial role in diversifying your portfolio. Holding a portion of your investments in gold can help reduce overall risk. It is because gold performs differently than other asset classes, such as stocks and bonds. You know what? A study by the World Gold Council found that during the 2008 financial crisis, the price of gold increased by 17% while global equity markets fell by 37%. So imagine the power it holds and how effectively it manages the overall risk and diversifies your portfolio.
3. It Is a Great Store of Value To Preserve Your Wealth
Gold has been used as a store of value for centuries, and its value has remained relatively stable over time. This makes it a reliable option for long-term investors looking to preserve their wealth.
4. If You Invest In Gold Today, It Will Protect You From Economic Downturns Tomorrow
Economic downturns are inevitable, but you can protect your wealth by investing in assets that hold up well during times of market volatility. Gold has historically been a safe haven during economic downturns, as its value tends to hold up well during times of market volatility. This is because investors tend to flock to gold as a safe haven during times of uncertainty, which can drive up its price. It is a stable investment option because it is less volatile as compared to other assets.
Talking about other assets, if you want a detailed comparison of gold with other assets, check out the blog about why choose gold as an investment/savings.
5. It Can Also Hedge Against Currency Fluctuations
Gold can be a hedge against currency fluctuations, as its value is not tied to any specific currency. It can be beneficial for investors concerned about their currency's stability.
Wait, it is not over yet. We thought to show you a smart way of saving in gold but for that you need to know what is digital gold and why it is better than physical gold.
Read the next topic and you will have all the answers.
Why Saving In Digital Gold Is Better Than Physical Gold?
Let us start by telling you what is digital gold. As the name suggests, it is gold purchased in digital form. But please don't confuse it with gold ETFs as both of them are very different concepts. If you want to know the difference, then we recommend you to read about Gold ETF V/s Digital Gold Which Is Better?
Anyways, when you purchase digital gold of your desired amount (It can be any amount of Rs.100, Rs.1000, Rs.10000, it is up to you), an equivalent amount of physical gold is stored in insured vaults on your behalf. And you can sell gold anytime you want using the app. It is the reason why it is the preferable choice of people when it comes to saving money in gold.
Now, let's get back to the reasons why you should save in digital gold.
1. Security: It is Always With You Wherever You Go
Storing physical gold can be risky as it can be stolen or lost, whereas digital gold can be stored in a secure digital wallet, providing an added layer of security.
2. Cost-effectiveness: You Don't Need To Bear High Locker Charges
Purchasing and storing physical gold can be costly due to transportation and storage fees, whereas digital gold can be purchased and stored at a lower cost.
3. Liquidity: You Can Easily Buy and Sell Gold When It’s Digital
Gold is a highly liquid asset, meaning it can easily be bought and sold on the market. It makes it a convenient investment option for those who may need to liquidate their assets quickly.
4. Convenience: You Can Buy Digital Gold From As Low As ₹1
You can buy digital gold with any amount you are comfortable with. Suppose you save Rs.100 this month, you can save it in the precious metal. There is no such thing as minimum investment, unlike physical gold.
Conclusion - Why You Should Use DigiGold To Buy Digital Gold Online
We showed you different perspectives on saving money in gold throughout the blog. So we will end it by showing you an even newer way to save your money. Using the DigiGold App, you can save a fixed amount of money in gold every month using the SIP feature. It allows you to be consistent with your savings and secure your future.
However, we recommend you to do your own research and then decide. And always compare the gold prices before buying gold.