Gold investment 2019: Here’re 3 unique benefits of investing in gold

Gold investment 2019: Here’re 3 unique benefits of investing in gold

Gold investment has been always considered considerably safe across the globe and highly auspicious as far as the approach of the Indian landscape is concerned.

Gold investment: Here're 3 unique benefits of investing in gold

Many gold investors add equity assets into their portfolio during the time of stock market bull run.  |  Photo Credit: Representative Image

New Delhi: Gold investment has been always considered considerably safe across the globe and highly auspicious as far as the approach of the Indian landscape is concerned. As India celebrates the festival of Akshaya Tritiya 2019, a bunch of people might be exploring gold as an investment option. Over the years, there had been a partial shift in the investment preference of people to the other asset classes other than the conventional investment options such as gold, other precious metals, post office savings schemes, bank fixed deposits, and several government-backed investment options.

Nowadays, the retail investor is more interested in lucrative and better-return generating investment options such as equities (stocks), mutual funds, corporate bonds, and other equity-related options. Despite a huge preferential shift towards the other investment options and relatively low returns in gold, a large section of people still prefer yellow metal (gold) as a better investment option.

Here are three unique benefits of investing in gold

1. Highly liquidity 

Gold is the most liquid asset among all the other assets available to invest, be it equities, bonds, derivatives, bank term deposits, post office savings, insurance schemes, art objects or other precious metals. The acceptability of gold is highest across the world markets including the central banks of nations and big investment houses. Gold has the fastest convertibility into cash as compared to all the aforementioned assets which imply a person can convert most of the standard forms of gold into cash very easily.

2. Less volatility 

On the other hand, gold is less volatile against the market fluctuations unless equity, debt and other equity-related investment options. Therefore, gold is the best safe haven asset vs treasury bills and other government-backed securities. Other assets such as equities, currencies, bonds, insurance schemes, real estate, mutual funds, bank term deposits are highly sensitive to interest rate variations, market turbulence and the sovereign credit rating of a nation. Inferentially, gold is best-suited investment option for risk-averse investors who are more interested in safeguarding the money.

3. Diversification 

Gold acts as one of the best options to diversify the portfolio as the inclusion of gold in the portfolio brings an asset which can be easily converted into cash. Following which, at the time of any unsolicited or unplanned requirement, an investor is not required to disturb the entire portfolio in order to get cash. Traditionally, gold and equity investment moves neck-to-neck. At the time of the market crash, people increase investment into gold on a proportionate basis, while, at the time of an elongated bull run, many gold investors add equity assets into their portfolio.

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