The Union Budget 2017-18 gave all of India an immediate increase in take home salary of Rs. 12,500 with the tax rate being cut from 10% to 5% for those earning an annual income of between Rs. 2.5- Rs. 5 Lakhs. Here are 5 reasons why you should spend that money on gold.
Reason 1: Profitability
Despite changing times, gold’s historical growth and potential returns speak for themselves.
Rise in gold price over 15 years
Return on investment
Potential return* on today's gold investment
*Considering it grows at the current CAGR that held true for the latest 15 year-period.
Reason 2: Versatility
Gold allows you to choose an investment avenue that is well-aligned with your risk appetite and financial goals. Here’s a look at the different ways you can invest, and the advantages of each.
Reason 3: Flexibility
You can start investing in gold with just a few thousand rupees. Here’s the minimum investment required across gold formats:
Reason 4: Liquidity
Gold can be converted to cash easily in case of a profit opportunity or crisis. While physical gold can be sold at gold jewellery stores across the globe, gold ETFs too can be sold within a matter of hours on the National Commodities & Derivates Exchange Limited (NCDEX) and Multi Commodity Exchange of India Ltd. (MCX).
Reason 5: Beauty
If you’re thinking, “Why not just buy jewellery?”, you’re not alone; more than 75% of the country's gold demand in 2016 stemmed from jewellery, as per World Gold Council's findings. Gold jewellery not only retains a much higher value than jewellery with studded stones or other precious metals, but also acts as a perfect heirloom.
A hedge against inflation and a long-term wealth creation asset, gold doubles up as a unique purchase to celebrate auspicious occasions. Weddings (24%), birthdays (15%), and religious festivals (12%), remain the top three occasions to invest in gold for Indians, as per a 2016 TNS survey.
Here’s hoping you make the most of your government-sanctioned lucky break!
Placer is a form of mining used for precious metal deposits (particularly gold) and gemstones, found in alluvial deposits, i.e. the deposits which get formed due to the activity of water bodies cutting down large mineral stones.
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