Why you should invest in gold?.Check out the gold price history. -

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Most of you invest in gold because it is considered one of the precious assets and also for good returns. In this article, you are going to know why you should consider investing in gold. There is always a perception that gold prices never fall. But if you look at the approx price of gold for the past 50 years. You may witness a fall in prices but investing for a longer period will help to increase your profit.

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Invest in gold for better returns.

Investing in gold for the long term increases the chance for more profit. Kindly have a look at the below-mentioned table and you will realize a valid reason to invest in gold. Even though history cannot repeat itself in an investment you can get an idea from the past data.

Year	Gold Price (Rs)	Year	Gold Price(Rs)
1968	162	1995	4,680
1969	176	1996	5,160
1970	184	1997	4,725
1971	193	1998	4,045
1972	202	1999	4,235
1973	279	2000	4,400
1974	506	2001	4,300
1975	540	2002	4,990
1976	432	2003	5,600
1977	486	2004	5,850
1978	686	2005	7,000
1979	940	2006	8,400
1980	1,330	2007	10,800
1981	1,800	2008	12,500
1982	1,645	2009	14,500
1983	1,800	2010	18,500
1984	1,965	2011	26,400
1985	2,130	2012	31,050
1986	2,140	2013	29,600
1987	2,570	2014	28,010
1988	3,130	2015	26,343
1989	3,150	2016	28,625
1990	3,200	2017	29,670
1991	3,465	2018	31,440
1992	4,335	2019	35,220
1993	4,140	2020	48,650
1994	4,600	2021	48,340

The above prices are an approximate average of 10-gram gold prices of that particular year. From the above data, you can witness that 1 lakh invested in gold in the year 2000 will be worth 12 lakhs approx in 2020.

Liquidity.

Liquidity is one of the favorite reasons to invest in gold. In layman’s terms, liquidity means assets converting into cash. In case you are the owner of vacant land worth Rs 10,00,000. And immediately you need to sell land and convert it into cash how much time do you need?. Whether a week or month that too in case of emergency. Consider the same situation with gold whatever maybe the form may be a gold coin, jewelry, or gold ETF. If it is a gold ETF it may take up to 3 working days.

To hedge inflation.

Gold has shown positive growth even during an economic crisis. Gold is an appreciating asset, in the long run, it has beaten most of the other assets and acts as the best hedge against inflation.

Must Read: Power of compounding effect: Eighth wonder of the world.

Portfolio Diversification.

Don’t put all your eggs in one basket indicates the importance of portfolio diversification. You should allot at atleast 10% to 20% of your total investment in gold to protect you from market events. Historically it is observed that gold and the stock market are inversely related. This means when the stock market falls the gold price moves up and vice versa. To diversify your investment invest in gold.

Easy for Maintenance.

The top choice of choosing a less maintenance investment is gold. You can have it for hundreds of years even without maintenance. But other tangible investments require a comparatively higher amount for maintenance.

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No need for expert advice.

Investing in the stock market, real estate, and other similar assets you should need some knowledge or advice from an expert. But in the case of gold, no specialized knowledge is required to invest. You need to check just the purity of gold and the hallmark symbol.

Digital platform.

Nowadays even during a pandemic situation, you can easily invest in gold because of its emergence in the digital platform. Up to a few years ago, the only way of buying gold is by visiting the shop. But now you purchase gold online even in UPI apps like google pay and stockbrokers app like 5paisa, Upstox, etc. In these apps not only you can buy or sell but also safety is assured.

Loan Convenience.

The majority of banks and financial institutions offer jewel loans. In case of an emergency of cash, you can easily pledge jewels in banks or FIs you can avail a loan. That too in a quick time makes it as more convenient.

Preferable for the long term.

Gold is not only for investment purposes but is also used as an ornament. Most of the families having a habit of maintaining gold as treasure and passing it to the next generation. Investment in gold for the short term is not preferable, while you should consider it for the long term.