Is gold as an investment still relevant in 2022?
In an era where multiple investment products such as cryptocurrencies, riets, NFTS, ETFs, MFs, Yield farming, P2P Lending exist, Is investing in gold a bad idea?
Like all other investments, this too has pros and cons. But, I am here to spill the beans and talk to the point.
If you believe that Gold has no value, then do go through the balance sheets of all the central banks. You will find trillions of dollars worth of gold in their lockers.
If you believe that gold is the safest investment product out there, A little research will show you that gold has fallen over 7% this year. Not so safe anymore, eh?
Let us begin with a clean slate and take things one step at a time.
A steady and inflation adjustable asset, Gold has been the tried and tested investment mode. Some benefits include :
- It rises up fast after every fall
- It diversifies your portfolio
- Easy to liquidate
Below is the 5 year S&P net gain.
Let’s take a look at Golds performance.
So, Gold definitely is not irrelevant anymore. What are the different ways of owning gold?
- Gold Futures10
- Gold Coins
- Gold Companies
- Gold ETFs
- Gold Mutual Funds
- Gold Bullion
- Gold Jewelry
I personally do not prefer owning gold in the form of Gold jewelry because the tax and making charges on top of the price of the metal reduces my margin. It is also risky to keep the hard metal at home as there is a chance of theft. I usually pick up gold in the form of ETFs or in the form of digital gold.
Safegold is one good way to invest in gold. This is not a sponsorship or affiliate link. I personally like the product.
Happy investing!
I aim to write short and simple stories around this space, but if you would like me to write a more in-depth analysis. Do let me know in the comments, and also, please make sure to join the channel!
I aim to write short and simple stories around tech & finance. If you would like me to write a more in-depth analysis. Do let me know in the comments, and also, please make sure to join the channel!
