In Indian culture, gold is believed to be extremely precious. India has also backed 1st position when it comes to gold consumption, globally. But surprisingly, the way we use gold like keeping it for child’s marriage, mortgage, or selling it for money are not only the sole uses of having gold.
Interestingly, gold is not just a lifestyle product but also an investment asset. Gold has always been an interesting investment plan asset. But the question is how has it become an interesting investment asset over the years? Well, let’s figure it out!
In this blog, we’ll be discussing over few topics mentioned below: ● How has Gold become an interesting investment asset over the years? ● Complications with Physical Gold ● Why does Digital Gold sound more promising?
How has Gold become an interesting investment asset over the years?
Erstwhile, gold was a major source used as a trade, as money in ‘paper’ form was not there. Soon the introduction of currency happened. Now the government in exchange for the amount of gold returned a ‘note’ with their stamp and receipt. For instance, if someone gave them gold worth Rs. 500, then the government would provide them with a note of Rs. 500.
Now no one had to carry physical gold for purchasing something, the process was hence simplified. Money in this world was pegged to gold for the longest time. There were actual gold reserves set up by the government which were used to translate them into an actual currency that was floating in the market.
Thus, Gold became a valuable asset. these papers that we now call ‘note’ or ‘rupees’ had a foundation and that was GOLD.
Complications with Physical Gold
As said above, there is a tradition of physical gold in our country. Whenever someone thinks of Gold, they believe in either purchasing a piece of jewelry or maybe a gold bar, but no one thinks beyond that.
Physical Gold persists many problems like: ● You need a secure space to store the physical gold like in lockers or say gold vaults, or even at a secure space in your house. ● Secondly, buying as per the amount you have currently might get difficult. For instance, if you are a student and want to avail gold of Rs. 400 or say 1000, it might become difficult. ● Thirdly, there is always a question mark when it comes to the purity of physical gold. Ample of gold frauds happen that involves a sense of doubt for purchasing physical gold. ● Lastly, there are making charges involved too.
Why does Digital Gold sound more promising?
Over the last few years, people have realized that gold does need to be stored physically if the purpose is of investment. The entire world is closing more towards digitalization, and so is Gold. Digital Gold is not physical gold, but it is the digital form of the investment that you’re making.
The best part with digital gold is that these are cost-effective and spontaneous. Unlike physical gold, here you can buy gold with an amount as low as Rs. 100, backed with 24k 99.9% purity. The service is available at your fingertips, purchase, and sells digitally at market prices. The process even involves complete transparency.
People now don’t have to worry about additional storage or carrying costs, as the safety of gold is stored in a safe vault by the investors’ name. When a purchase is made, the trading companies make sure to check the purity of the gold and place it in the vault by the name of the investor.
The best entitlement of digital gold is that it can be quickly and easily redeemed. The process of buying and selling is very simplified. Online platforms providing digital golds offer real-time gold rates. Therefore, making it advantageous for the investor of the price movements and make purchases.
Over several years, gold has remained a really good investment asset. Gold is a commodity, a metal and thus it is very important to understand the limitations of physical gold. Therefore, by being a futuristic new age consumer one should move towards the digitalization of gold. If the purpose is just for the consumption purpose, then physical gold will play its role effectively.