Are Gold Coins A Good Investment – Knowing The Benefits Of Investing In Gold
June 09, 2019
Indians, in general, have a great affinity towards buying gold jewellery - from investments to special occasions, gold is popular in India. This article gives you an insight into the benefits of investing in gold coins.
In India, people buy gold for various reasons from investment to jewellery. The flashy yellow metal is not just about bling, but also offers significant returns on your investment. Historically, the value of gold has appreciated with time, which makes it an extremely rewarding metal to invest. Let us look at the various benefits of investing in the yellow metal.
Demand is high
Gold as an investment is the oldest form of investment known to mankind. This shows that there is always a demand for gold, which makes it an attractive investment proposition that can fetch money in case of an emergency. The gold coins promise quick liquidity.
Excellent returns on investment
Several investment experts have corroborated that at least 5-10% of your investment portfolio must be invested in gold. This not only helps you have a diversified portfolio, but also helps you balance the risk. The gold prices often go up when the value of other assets like bonds and stocks falls. So, no matter if you buy gold online or buy it from a bank, investing in gold coins will ensure that you get valuable returns even during the low phases.
Transparency in pricing
When you buy gold from a local jeweller, the price can be an issue as you can never be sure about the gold content. However, when you buy gold coins online, you can be sure that you get the best quality gold and the pricing is right. This is because, the price of gold coins is regulated by Metals and Minerals Trading Corporation (MMTC), a Government of India body, which ensures transparency in pricing.
All gold coins minted in the Indian Government mint and sold in India are certified as per the Bureau of Indian Standards (BIS) Hallmark. This means that when you invest in gold coins, you can be sure to get 24-karat gold with 99.9% purity.
Easy to monetise
When you try to sell your gold jewellery or gold bars, you may have to bear the fees. This is because the gold must be melted, checked for its purity and reshaped so that it can be reused. Besides, there is uncertainty about finding the right buyer who could buy all the gold you want to sell. However, with gold coins, you need not have to worry about selling in the open market; you sell the coins to MMTC. MMTC has a buy-back option for gold coins.
One of the most significant benefits of buying gold coins from banks is that you can invest as per your spending capacity. You can buy gold in smaller quantities like coins of 5 grams, 10 grams or more as per your choice. Thus, you have the flexibility to invest at any time you want and any amount you wish to; there is no fixed limit as to the minimum amount you must invest.
No risk of fake gold
When you invest in gold coins, you can be assured of the quality of the metal. The gold coins in India come with advanced security and anti-counterfeit features; every pack of coin has a unique barcode and serial number.
So make the smart investment decision by investing in gold.
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