Is Gold Investment in India still profitable in 2022?

Historical data have proven that investing in Gold has always been a solid form of investment. Not only it has been a symbol of wealth and status but also a safe and secure way to safeguard our savings. But in recent years, with economy shifting drastically and inflation is on rise without ever slowing down, one thing we should re-consider is that the Gold investment is still worth the effort? Will it bring much return or should we look for better or reliable market for investment? In this article, we will discuss the current status of Gold reserve and what the future hold for this precious yellow metal in India.

In India, gold is the staple metal in every household would invest. Besides business purpose, it is also closely associated with many religious occasions like Dhanteras, where people buy precious metals like gold and silvers.  The value for gold has been prominent throughout the history in India. From a investor’s perspective, it can be a good protection against inflation as well as diversify your trading portfolio. Let’s look into some of the reasons why Gold investment is still one of the best options available in the market.

The main factor for rise and drop of gold prices are the supply, demand and the action of investors in the process. Due to very less product of gold in domestic market of India, most of it has been imported and outsourced. Since there is less supply, the demand is always on the higher side.

 Source: GFMS Gold Survey

Commodities like Gold and Silver are considered highly liquid, this makes it’s market ability to buy sell gold in a very stable price. Using the “spot price" all the buyers and sellers alike⁠ can check the gold price fluctuation  at any time to determine their next move.

As gold in physical form is solid metal, once its bought you can store and forget about it requiring no maintenance at all. Also, it can be passed down from generation to generation making it a very reliable form of investment.

As a developing country like India, where rate of inflation is increasing day by day, investing is gold is a solid option, as it protects your savings and hard earned money. Unlike stocks and other assets, major events will probably will not affect the value fo Gold in Long-term.

Investment is a game which needs close study and analysis of the market, moreover you need to learn of techniques to master the patter of market. But in case of gold, the price doesn’t fluctuation very often and stays stable most of the time. An investor with minimal experience can buy and sell it any time without needing any special knowledge.

In today’s market, we have multi options for investment in Gold each serving its purpose depending on the requirement and situation of the investors. Followings are the options most popular among traders in India:

ETFs or Exchange traded funds where a trader can own the value of gold without actually having to buy physical gold and store it. Investors can mainly buy the units from banks or brokers which will act as a middleman, they will also help you keep updated on latest gold price in the market.

 These days everything has gone digital, from payment to buying daily needs. Such is the situation for gold we have now. Now you can purchase digital gold without worrying for safe storage or anything. And whenever you want to have the gold, the service provider will deliver it to you on the go.

Gold funds are those investments which assets related to gold in form of gold futures contracts or gold mining company. The returns for this kind of investments are mainly dependent on the gold companies the investor rely, if the company gets good returns, eventually the investors will also a good return.

Last but not the least, is the most traditional method and that is buying physical jewelry or gold bullions. If you are more traditional investor who likes to feel the gold and feel secure to keep it around then this option is for you.

As an investor, whether new into to market or a skilled one, investing in Gold should be an necessary for diversified investment portfolio. In response to the events causing regular stock and paper currency to drop its value, the price for gold will relatively stay stable. Though the returns might be only fruitful if you go for long term instead of short ones. For the newbies in the market, gold investment could be a simpler and safer bet where the investor can make some profit along with learning about investments. Historically, it has served as a hedge against inflation and the erosion of major currencies, and thus is an investment well worth considering.