What are the different benefits of investing in gold?

Personal Finance

Gold as an investment will never break your expectations. In India, gold is considered a stable investment option apart from ornamentation. Gold trade and investment range from physical gold to virtual one. However, every form of gold is valued. This article will guide you through the top reasons that you should consider investing in gold.

Why is Gold so valuable for Investing?

For centuries, gold is highly regarded on a global scale due to its worth and rich history. Gold as a metal will never lose its quality. It is lustrous and will not corrode.

This makes gold a precious tool for investment too. The other reason for its value is the scarcity and the high demand.

With these, you can now explore the top benefits of investing in gold.

What are the benefits of investing in Gold?

Higher Liquidity

Liquidity refers to the degree to which something can be converted easily into ready cash. In terms of liquidity, nothing can beat gold. Gold can be converted to ready cash, unlike currency. For example, the Indian rupee can be used easily in India. But when you go to other nations, you must approach a forex market or other dealers. However, this is not the case when it comes to gold. Gold can be converted easily on a global scale.

Shelter from Recession

Throughout history, the recession has never affected gold. A recession is a period of low economic activity and negative economic growth. When you invest in gold, you will easily overcome the burden of recession. This is because gold will never lose its value.

Security against Inflation

Investment in gold is not affected by inflation. Inflation refers to the general rise in prices. It is also the time when money loses its value. In other words, the purchasing power of money will decrease.

If you look at the price rise of gold, throughout the past, you will invest in gold without a doubt. The gold price has doubled in the past five years and quadrupled (increased four times) in the past ten years.

Physical Asset (Tangible Asset)

Gold is a physical and tangible asset. You can happily feel it and touch it. Investing in gold is not like a stock or virtual money or bitcoin. No one will hack or steal your gold digitally. This is the best benefit of investing in gold.

Easy Purchase

Unlike stock and other investments, purchasing gold is easier. There will be no lengthy formalities and requirements. Even when you buy some tangible assets like land or other property, formalities will be more. This makes investing in gold a better option.

Investing in Gold is not a Rocket Science

If you are planning to invest in a stock or mutual fund, you need specialised knowledge of the market, government policies, etc. But this is not the case in gold investment. All you need is just go, buy and store them. You don’t want to track any market conditions.

No need for a Bulk Amount to Invest at a time

When you start investing in gold, you can start by taking baby steps. You can save very small amounts and buy accordingly. You will not end up with a lump amount of money as you do in real estate or stocks, or bonds.


As said earlier, investing in gold reduces the risk of liquidity, inflation, and others. It may be a geopolitical tension, a natural disaster, law and order, or any phenomenon. Gold is always gold! You can liquify it anywhere.

Less Maintenance

This is the best advantage you could reap from investing in gold. Gold requires less maintenance. Unlike a real estate property, you don’t want to visit it often, clear the weeds, clean the surroundings, etc. But you can never ignore the cost of a box or a bank locker!

Perfect Legacy for your Generations

Investing in gold is the best legacy you can gift to your future generations. It is also very easy to pass on to the next generation. You don’t want to write a will, look for a property bond, etc.

Loan against Gold

Investing in gold will also help you in times of emergency. You can pledge your gold as collateral to a lender or any trustworthy institution like Piramal Finance. You can get your amount and pay the interest till the period. After paying the lender will return your gold.

Gold Investment Options in India

Gold is in different forms such as the following

  • Physical Gold: Physical Gold is what you see in jewelry shops. Physical Gold includes ornaments, bars, and coins. Bars and coins are best for investing when compared to gold jewelry with stones.
  • Digital Gold: The world is becoming more digital and so is the gold. Digital gold is what you can not see through your physical eyes. It is also called e-gold which is almost like stocks. You can buy it for as low as one rupee.
  • Gold ETFs: ETFs are Exchange Traded Funds. Here, you will invest in physical gold on the stock exchanges. These are passive investments in gold.
  • Gold Mutual Funds: Gold Mutual Funds are mutual funds. Here you can invest in gold reserves either directly or indirectly.

Gold Loan Interest Rate

The gold loan interest rate differs generally from lender to lender. But it ranges from 7% to 29%. The gold loan interest rate also depends on the quality of the gold that you have. i.e, the purity of the gold.

The Bottom Line

We hope that you understand the benefits of investing in gold and the investment options available. Then why doubt? Invest in gold, may it be a recession, inflation, law and order, natural calamity, etc. Gold investing is a cushion in any of these unforeseen conditions.

You can get the best gold interest rates in Piramal Finance. Piramal Finance also helps you with any of the financial processes with its expert team. Kindly contact Piramal Finance for doubts, if any.