In your investment portfolio, you need to ensure at least little bit of stability to counterbalance possible loss. Experts recommend investing 10 to 20 percent of your total investment portfolio in gold.
You can purchase gold bars in purity levels of 22 kt and highest levels of certifiable 24 Kt purity. India is one of the world’s largest consumer of gold bullion.India is a repository of over 600 tonnes of reported gold. What is amazing, is that gold continues to entice people and will do so forever. A resurgent India which has got by the effects of demonetization started investing actively in gold after a short gap.
Other useful and stable forms of investment are Gold ETF’s, gold coins, silver coins etc. Gold bullion bars are one of the best tangible ways of investment. It allows more control over the finances than when invested in other options. We put forth top 10 reasons why you should invest in gold bullion bars:
1. High levels of purity: As compared to gold jewellery, a gold bullion bar is a better investment option. While there are general guidelines around the purity of jewellery, there is no guarantee on its consistency. They differ depending on where you bought if from unlike gold bars which you can get it in 99.5 to 99.99 % purity. Better purity levels can be achieved in comparison with gold coins.
2. Cheapest form of gold: Why to invest specifically in gold bullion bar, you ask? Well, it is because crafting of gold jewellery requires a brilliant acumen, tough and long labour and hence attracts making charges and unavoidable wastage charges. Bullion bars are associated with lowest making charges and wastage.
Due to their bulk size gold bars are the cheapest against other forms of physical gold. While gold coins come in lower denominations, gold bullion bars that come in higher sizes turn out to be relatively cheaper.
3. Protection From Rising Cost of Living: Financial security has its own importance and cannot be overlooked as life as a bankrupt is horrible. With inflation, cost of living climbs and gold bullion prices go up proportionally. If you are dubious, just observe the fluctuating trends in the stock market during high-inflation years and contemplate investment in gold.
4. Risk Factor is Nil: The value of gold, ever since its discovery, has never depreciated to the core. It is a symbol of eternity and unalterable integrity . Such investments can survive adverse economic and political situations.
5. Advantage of Being a Rare Metal: There is a strong demand for gold across the globe. But there is a dearth of precious metal in the earth’s crust. A reason is that gold atoms are relatively heavier consisting of 79 protons and 118 neutrons.
Due to the scarce availability and everlasting demand price of gold is set to increase in the future.
6. Liquidity: Gold bullions and coins are the most liquidated forms of investment. At times of need, it can be encashed in any jewelry retailer store. If you can store it safe, it is the best form of tangible investment. Apart from jewellers, banks or pawn shops in your vicinity may come to your rescue.
7. The Importance of Convenience: This form of physical gold, as known, requires no exclusive storage unlike a jewel. You can readily store them within your closet and transport using any travel bag. Due to the large sizes, even a mild investment in gold bullion bars can reap high returns in the years to come.
8. Safe Option For Portfolio Diversification: With the advent of internet, bloom in I.T industry and economic growth of the nation, in general, people are set on diversification of their investment portfolio. You can add assured stability with decent returns to investments using gold bullion bars and explore the potential to leverage your investments for increased returns from land, property etc.
9. High Resale Value: As said earlier, gold bars can be refined to 999 fineness with consistency in fineness. The gold bullion bars are recognized globally as an asset. This raises the resale value of gold bullion bars globally.
10. Secure And Transparent Financial Transaction: It is important for an individual to be watchful during any transaction for hidden charges, he may run into. There is no such costs associated with gold bullion bars. Thus, the purchase process is very transparent.