Gold posses a high value throughout the world. Even history has a trace of the inclusion of gold cultures for thousands of years. Throughout the centuries, people have continued to hold gold as valuable wealth. Gold has a lot of significance in Nepali culture but we are not talking about emotions here, but about, financial investment. As it is not a matter of heart but mind and thus, let us take a look at all the practical reason that make gold a better investment over other options. Below are Five reasons to invest in gold.
Protect yourself against inflation:
We know when inflation rises, the value of the currency goes down. Over the time period, almost all major currencies have depreciated in value relative to gold. So, people tend to hold money in the form of gold. In times when inflation remains high, over a longer period in the economy, gold protects you against inflationary conditions.
Having wealth that you can carry anywhere effortlessly is possible in case of Gold. In addition to that buying gold is much easier than real estate or anything else. It is safe for the people who are trying to start doing investments as very less risk. You can get the rates according to the current market price.
Gold retains its value in financial uncertainty, also of geopolitical uncertainty. It is often called the "crisis commodity," because people are sometimes compelled to flee to other places and even countries due to conflict within the country. Thus investments in gold are even valuable than cash in hands in such cases. For example, gold prices experienced some major price movements this year in response to the crisis occurring in the World Bank.
At the time of need, investments in gold can be liquidated much faster than other physical assets like real estate, vehicles. Unlike many other assets, there is no lock-in period in gold investments except it's for sovereign gold bonds. The redemption amount in case of physical gold will depend on the purity of the gold, denomination and other factors including the market price. When short of funds, you may also take loans against gold.
In previous years, the demand for gold has grown very high. In many countries, gold is a necessity in the culture. South Asian Countries are the largest gold-consuming nations in the world; mostly for jewelry. Especially in the wedding seasons in June, July, November, January is traditionally the time of the year that sees the highest global demand for gold. It is traditionally gifted to new bride as a culture meaning to start of new life with blessings of prosperity.