The question that puts every investor in the dilemma of “is gold as an investment can give me the desired returns?” Plenty of asset classes, like stocks, mutual funds, ETFs, etc., can generate substantial returns, so investing in gold has its perks. 

There are many benefits of gold investment, and in this blog, we will discuss why you should invest in gold.

5 reasons to invest in gold

Protection against inflation risks

Gold investment protects savings from currency depreciation over time, providing a hedge against inflation. In addition, investment in gold doesn’t deteriorate with time, which makes it an ideal choice for long-term investment. 

Tax benefits

Gold investments, such as non-equity products like SBI Gold Fund, can have lower taxation or even tax exemptions, offering long-term capital gains and tax benefits. To get the complete picture of how to save tax on gold, read this article.

Stable and safe investment

Gold holds inherent value in the long run, remaining relatively unaffected during market crashes or pandemics, making it a preferred alternative to stocks and bonds.

High liquidity

Gold is easy to sell and recognised by jewellery dealers worldwide. You can use gold as a security against a loan, thus making gold a highly liquid form of asset.

Good returns and security

Traditionally people prefer investing in physical gold as it is a secure investment option. Moreover, with time, it appreciates in value, which offers consistent returns in the long run compared to other asset classes. 

In conclusion, gold investment returns are par, if not worse, with other asset classes, thus making it a secure investment option. Moreover, it acts as a status symbol. Therefore, 15% of the overall investors are heavily invested in gold.


Is it safe to buy gold in 2023?

Since inflation persists and the economy remains uncertain, experts say buying gold at a high price will not change anything. Gold prices will continue to soar, irrespective of inflation. Also, it presents an opportunity for investors to diversify their portfolio with an asset like gold to add stability to the portfolio.

What are the risks associated with physical gold?

Since physical gold is a finite commodity, risks such as theft, storage, making charges, and more will always loom. On the contrary, digital gold, like gold ETFs and Sovereign Gold Bonds, carries none of these risks.

Can I invest in gold online?Yes! You can invest in Sovereign Gold Bonds and Gold ETFs, where you receive electronic units representing physical gold upon investment.

Harshit Singh
Latest posts by Harshit Singh (see all)
Notify of
Inline Feedbacks
View all comments

The blog posts/articles on our platform are purely the author’s personal opinion and do not necessarily represent the views of Anchorage Technologies Private Limited (ATPL) or any of its associates. The content in these posts/articles is for informational and educational purposes only and should not be construed as professional financial advice. Should you need such advice, please consult a professional financial or tax advisor. The content on our platform may include opinions, analysis, or commentary, which are subject to change, without notice, based on market conditions or other factors. Further, the use of any third-party websites or services linked on the website is at the user's discretion and risk. ATPL is not responsible for the content, accuracy, or security of external sites. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL (in case of IAs) and certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors. The examples and/or securities quoted (if any) are for illustration only and are not recommendatory. Any reliance you place on such information is strictly at your own risk. In no event will ATPL be liable for any loss or damage including without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of, or in connection with, the use of this website.

By accessing this platform and its blog section, you acknowledge and agree to the Terms and Conditions of this website, Privacy Policy and Disclaimer.