October is the month of festivities almost all over India, be it Navratras, Durga Puja, and Dussehra. The current festive season offers a unique way of seeing Indian culture at its best. It certainly adds to the lively spirit in the air and makes us feel alive. The season is also marked with lavish spending. And what could be better than investing in gold?
Gold prices are at a two-year high of Rs 32,311 (prices as of October 2018). Given that markets are fluctuating on a daily basis as a result of geopolitical worries, in this scenario, investors should ideally be looking to hedge against losses and the best way to do that is to go for gold.
Here are good reasons why you should invest in gold right now.
1. It won’t lead to financial loss even during inflation
When inflation rises, the value of the currency decreases. Over the long term, almost all major currencies have depreciated in value relative to gold. Therefore, people tend to hold money in the form of gold. Gold becomes a hedge against inflationary conditions.
2. There is no lock-in period in gold investments
When required, investments in gold can be terminated much faster than other physical assets like real estate. The return amount, in case of physical gold, depends only on the purity of the gold, denomination and market price.
3. Investment in gold as bonds is also a profitable deal
Purchasing gold as a bond has equal benefits. Firstly, investors get a fixed rate of 2.5 per cent as interest per annum, which will be credited semi-annually to their bank account.
Secondly, the return price will be calculated as the average of the last three days of the closing price of gold, which is quite a profitable deal.
4. Gold usually does well during the geopolitical turmoil
Geopolitical worries plays a good part when it comes to gold prices. Prathamesh Mallya, Chief Analyst, Non-Agri Commodities and Currencies, says, “Gold prices have been trading in $1,300-1,360 for 2018 despite the rolling geopolitical uncertainties.
Indeed, gold is the best choice for investment.