Gold is rightfully known as the metal that has successfully withstood the test of time. It is the most durable metal known to man and that is what makes gold the perfect investment for you! For centuries gold has been the perfect investment tool and has always fared well.
Over time the value of gold has only increased, so what makes it so perfect? Read to find out!
Table of Content
Safety Against Inflation
During inflation when the value of currency decreases, the value of gold rises. Gold fares well when things go south for the market and that will give you that security of a diversified portfolio.
Gold Has Shown Steady Growth Over The Years
Over the last 50 years, the value of one gram of gold increased from INR 16.75 to INR 4363.48. This alone goes to show that gold is the perfect tool for long-term investment. Every portfolio needs a careful balance of risk and safety. The safety comes from gold.
Gold’s Correlation With Other Assets
Gold has zero to no correlation with other assets. This negative correlation detaches gold from the fluctuations on other asset classes thus giving your portfolio stability. If you do not already have gold in your portfolio, this festive season is the perfect time to invest.
Gold is Highly Liquid
According to the World Gold Council (WGC), gold provided liquidity with no credit risk and as a result, improves the overall performance of a portfolio. It can easily be converted to cash. This makes it a great liquid investment option.
Gold To Diversify Your Portfolio
Diversification is something we have been talking about throughout, and why not? A well-diversified portfolio has gold in it. It protects against market panic in uncertain times by giving stability to the portfolio.
According to experts gold is extremely relevant to Indian investors now more than ever, owing to the turmoil caused by COVID-19. Gold has the ability to improve risk-adjusted returns of portfolios across various levels of risk and act as a hedge against inflation.
And now you do not even need to go through the hassle of buying physical gold and storing it, you can go digital and invest in Gold Fund! All the benefits of gold and none of the hassle. Gold funds are regulated by market regulators Securities and Exchange Board of India (SEBI) and are a safe investment option. What better day to invest in gold funds than on Diwali. Invest today with Sqrrl!
