ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

Why should we invest in Gold?

Updated on February 9, 2014

Gold has etched its presence in world history as early as 500 B.C, when King Croesus of Lydia made his coins of gold. Gold has an ethnic and cultural background and is interwoven across different societies and traditions worldwide.

Of all metals, gold is considered the most popular investment option in India and across the globe. The purchase of the yellow metal is driven by its increased usage in women in the form of jewellery.

“My wedding plan for this year spells trouble for me. Trends showing gold prices at all-time high, jewellery shopping will literally drain out all my savings. My family would be obliged togift around 5 sovereigns of gold jewellery for my spouse. I don’t have the financial freedom now to make these investment decisions in gold”, articulates a person who is indecisive about his wedding. Does this ring bells in your life too?

Have you pondered why gold investments and purchases and always surged? Read on to understand some of the reasons to own the precious yellow metal.


It’s safe heaven

Gold is often considered as an alternative to currency. During times of distress or a global meltdown, gold is a store of value. In comparison to currency, gold is known to have maintained its value across centuries. It is also seen as a measure of wealth passed on from one generation to another. This further proves why our elder generations compare time with gold to say, “Old is gold”.

To beat inflation

Inflation can be defined as an escalation in the price of goods and services or when a particular formof currency begins to be devalued. For the price increase to come under the inflation ambit, the rise in price has to be a sustained one. Over a period of time, you’d be able to buy a lesser percentage of good or servicethat you previously possessed,for the same rupee or currency you own. With the onset of inflation, the prices of gold escalate when the cost of living increases. This helps the investor as the value of the investment in the metal fetches him more returns than an investment in shares or equity during times of volatility.

Increasing Demand

Studies reveal that India is one of the largest consumers of gold. Its many uses arrive from passion to possess the metal in the form of jewellery and as a traditional handover from generations. It is considered as a symbol of pride and ego to be in possession of the priced metal. The increase is more during the auspicious wedding seasons, or earmarked days called “Akshaya Tritiya” and “Dan Teras”, where gold purchase is a custom.

In China too, gold bars are a traditional form of saving, and the demand for gold has been progressing steadfast.

Portfolio diversification

Investors diversify their portfolios across multiple geographies, style and sectors. The volatility of the portfolio is reduced when assets with a varied and low historical correlation is included. Small allocation to gold in a portfolio can reduce the risk and provide higher return trade-off of investment portfolios.

Investment for corpus fund needs

Many a times, a need arises for funds in dire cases of emergency. It is at this juncture that gold investments come handy. At an instance where the individual is cash strapped, apart from liquid cash and short term liquid funs, gold is an immediate answer for funds.Being a metal that is often traded and bought, it can be sold for cash, or even pledged for loans.

In India, there are specialized institutions like Muthoot Finance etc., which supplement immediate cash requirements by financing through gold.

Gold has always fascinated people across religions, geographies and culture, not only for its scarcity but also for its use. The history of gold dates back in centuries, where it was used only members of the royal family and as coins in trade.

A comparison between peer group of investments

(click column header to sort results)
Other Investments  
Buying and selling
Low when compared to gold
Options to Invest

Facts you didn’t know about Gold

We have seen gold adorned as jewellery and traded as coins; here are some interesting points about goals that lure you more to the metal:

  • Gold is derived from the Old English word ‘Gelo’ which means yellow
  • An ounce of pure gold can be hammered into a nine square meter sheet.
  • The melting point of gold is 1064 degree centigrade and boils only at 2808 degrees.
  • Only very few chemicals can attack or damage gold, and that’s primarily the reason it retains shine even if buried under the earth for over 1000 years.
  • Gold causes minimum discomfort to the skin and body as it conductivity is unique. It closely matches the average human body heat which is close to 37 degree centigrade.
  • Studies reveal that close to 15% of annual global gold consumption is recycled each year. That means your dental filling could have ancient Egyptian gold in it!!

Gold when invested in the right manner and through the right channels can create capital appreciation. Invest in gold and you would soon realize that the yellow metal can work wonders for your finances.

Investing in Gold

What is the reason to invest in Gold?

See results


    0 of 8192 characters used
    Post Comment

    No comments yet.


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)