While gold is a good investment, we mean the Indian tendency to use gold jewellery. This is the personal use of gold. It also involves your emotional investment. There are various ways to go beyond that and invest in gold today. Thinking about buying gold their should be some points for consideration.
The true friend who is useful in the need, the investment that is useful in need of the same background can be termed as a true investment. According to this criterion, gold can be said to be a real investment. But investing in gold is not only the reason. There are various reasons why ordinary people buy gold. Gold prices do not fluctuate widely and frequently. Whatever the investment amount, small amounts of gold can be purchased. They are easy to handle and can be sold, mortgaged, without much loss and can be sold quickly. Plus it can be refined!
Gold, silver, diamonds, and gemstones are among the precious metals. In industrial use, the first is silver, followed by diamonds and then gold. That is, the industrial use of gold, which is tempting everyone, is very low, and therefore worthless. Both gold and mineral oils originate from events that happened millions of years ago. Mineral oil is used for industrial use while gold is not. That is if the mineral could not be used as such, would the Gulf countries have appeared in the advanced state that they are today? India is in a very similar state. In our country which has a history of a few thousand years, there is a huge reserve of indestructible gold (both to the government and the citizens). But India remains an economically backward country. Because as mentioned above, that huge gold has no use other than personal use. The economic development of the country depends on the use of resources, so buying gold is a barrier to economic development, which is the principle proposed by Keynes at the beginning of the twentieth century. The assumption behind that is other options available for buying gold.
There are historical, economic as well as social reasons why Indians are so attracted to gold. The economic reason is that India was never an industrial country, exporting natural products was a big industry in India. And there were no risks to the trade. In the pre-independence period and for fifty-five years thereafter, we could not afford to invest the money we saved. Most of the people here depended on agriculture. It was a question of what to do to save money beyond home, and land. Naturally, gold was an easy, convenient option.
Social causes are a joint family. In India, the family system was established because of the caste system. We have not migrated as extensively as other countries due to a joint family. People lived in one place for generations.
When asked to buy gold, the common man goes to the goldsmith and tells him his budget. goldsmith asks him if he wants anything else in the form of jewelry. Most of the time, he chooses jewelry. Brings the jewellery home, wear it once a year for festive occasions or wedding ceremonies. But gold can be bought in different ways.
In the form of biscuits: These weigh in size from one gram to several biscuits. Price, of course, depends on weight and accuracy.
In the form of Bars: Weight Lots In both cases, the seller gives a certificate of accuracy, often with no withdrawal weight loss. These are both very easy to sell.
In the form of gold coins: Many western countries have made gold coins and are in good demand from collectors and investors. These include South Africa, Australia, Austria, Canada, China, Malaysia, France, Mexico, England, and the United States. The Modi government has decided to make the gold coin, which is expected to have an Ashoka chakra on it. It will be the first gold collecting coin to be made in India.
In the form of twists: When gold is made of jewelry, other metals have to be mixed in it. Naturally, even if the jewelry looks nice, its accuracy is diminished. If we go back to sell it, his value is less. So in the old days, people used to buy gold wire, thick wire of gold. Still, get this kind, but it is relatively low demand.
In short, having gold is like having an insurance policy. Other times useless but useful in need. But since no one spends all their savings on paying insurance premiums, it seems appropriate to have a similar role with regard to gold.