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Why you must consider gold as the ‘shining armour’ of your investment portfolio

Updated on: May 17, 2022

In a country like India, gold is much more than just another commodity. It has always been the status symbol of the rich and powerful — and continues to hold a special place, especially during weddings and religious ceremonies. What’s more, it has almost always been viewed as a symbol of financial security, coming to people’s rescue when things go awry. Today, when markets are witnessing frequent fluctuations brought on by the COVID-19 and Russia’s invasion of Ukraine and giving investors sleepless nights due to uncertain market conditions, can buying gold jewellery be considered a financial shield? Let’s find out. 

Is gold a reliable investment?

Investing in equity has been the domain of those who have a high-risk appetite; for others, it has always been a risky proposition. Plus, investing also brings on certain challenges, including inflation. A good investment is one that can beat inflation and provide you with financial security. Gold ticks all the right boxes, and there’s enough evidence to testify to this claim. Between the years 2018 to 2020, Nifty50 experienced extreme volatility and recorded a CAGR of 10%, while gold had a CAGR of 19% in the same period. In addition, since gold is a physical asset, it recovers its value quickly during an economic downturn.

Here are some other reasons why you must invest in gold:

1. Safeguards your future: It is a good idea to invest in physical gold and save for the future. The value of gold has always skyrocketed during financially turbulent times — moreover, with a high resale value, gold is an asset that will help you reap good returns in the future.

2. Does not require much maintenance: Unlike several other financial assets, gold does not require too much upkeep. For instance, if you have invested in real estate, you know you have to take out time and make sure it is in mint condition, or else you won’t get a bang for your buck. But in the case of gold, you can keep it safely in a bank locker for many years, without any hassle.

3. Ensures price stability: We already know that crashing markets can bring down the value of assets by a considerable margin. In the case of gold, it is the other way around because prices remain rather stable. Keep a track of the gold rates regularly to stay up to date.

All in all, gold also retains its value in geopolitical crises and not just during internal economic turmoil. Yes, it’s true. When tensions around the world rise—the recent example being the Russia-Ukraine conflict—people flee to safe-haven assets, as they outperform other investments.

Should one own gold jewellery?

Gold has been successful in maintaining its value over the years. Due to its physical properties, gold is not only considered one of the best and safest investment vehicles, but is also owned as jewellery. The unique properties of the metal enable people to pass it on from one generation to another. Haven’t we all seen mothers handing over their most precious sets to their daughters? Well, that’s because gold also holds immense emotional value in a country like India.

Let’s take a look at some benefits of owning gold jewellery:

  • Liquidity: The best part is that gold jewellery can be converted to cash, anywhere in the world.
  • Retains its value: Unlike other financial assets, gold retains its value over a period of time. In fact, economists even say that the price of gold does not indicate its value. That’s because even if there are price fluctuations, the underlying value of gold does not really change much.
  • Provides diversification: It is always a good idea to invest in different assets to reduce the overall risk of your portfolio. Since gold moves inversely to the stock market, it is beneficial to invest in gold jewellery.

A jewellery plan for your needs

While buying gold is the best investment options for many, the high price of this precious metal could be a dampener. But what if we told you, there’s a solution? Yes, one of the leading jewellery brands in India, Bhima Gold has rolled out a new plan to make it seamless for its customers to own gold.

Under its Bhima My Choice - Golden Key plan, customers can secure gold in the easiest, most economical, and most convenient way, simply by making Easy Monthly Advance (EMA) payments online. With this option, buyers can own quality jewellery through easily managed monthly payments. The plan reduces the burden of paying a hefty amount in a single go, which is the biggest advantage.

For a term of 11 months, customers can make a monthly advance payment of a minimum of Rs 5,000, and the cumulative of all payments can be redeemed at the end of the 11th month with full benefit. The member can purchase BIS Hallmarked 22 karat gold jewellery or gold coins depending on their choice, with benefits such as 0% on value addition or making charge.

There’s also the Bhima My Choice - Kubera plan, wherein for 11 months, customers can make fixed and equal EMAs for a minimum of Rs 2,000 or above. The weight of 22 Karat gold equivalent to the value of the EMA will be credited to the customer’s Kubera EMA account for the amount paid month on month as per the prevailing rate on the day of payment received by Bhima.

Plus, there are other options too — check out the Bhima My Choice — Samruddhi plan and Bhima My Choice — Ratna plan today! Customers can also purchase gold or gold coins digitally at www.bhimagold.com.

The best time to buy gold and gold jewellery is now, so don’t wait and visit the store now — virtually or physically!

This article is part of sponsored content programme.

Published on May 17, 2022
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