Money Excel - Personal Finance Blog

Menu
MENUMENU
MENUMENU
  • Home
  • Business Ideas
    • 225 Small Business Ideas
    • 40 Online Business Ideas
    • 20 Business Ideas for Beginners
    • 20 small manufacturing business
    • 30 Food Business Ideas
    • 100 Business Ideas low investment
  • Stock Market
    • Best Demat & Trading Accounts 2021
    • Best Virtual Trading Apps
    • Best Stock Screener
    • Best Discount Brokers in India
    • Multibagger Stocks of LockDown
    • Rakesh Jhunjhunwala Portfolio
  • Mutual Funds
    • Best Mutual Funds 2021-22
    • Best Direct Mutual Fund Platform
    • Best Mutual Fund Mobile Apps
  • Incometax
    • Income Tax Calculator FY 2020-21
    • Latest Income Tax Slab FY 2021-22
    • Income Tax Refund Request
    • Pay Advance Tax Online
    • Download New 15G -15 H Forms
  • Investment
    • Best Investment Options 2021
    • Long Term Investment Options
    • Best Investment Regular Income
    • Best Investment Options NRI
  • Credit Card
    • Best Credit Cards 2021-22
    • Best credit card for online shopping
    • Best Forex Card in India
    • Best Business Credit Cards
    • Credit Cards against Fixed Deposit
  • Insurance
    • Best Term Insurance Plans 2021
    • Best Health Insurance 2021
    • Best LIC Policy 2021
    • Best Car Insurance Companies
    • Best Mobile Insurance Companies
  • Downloads
Home
Gold
Gold as Investment Good or Bad?

Gold as Investment Good or Bad?

Raviraj Parekh July 26, 2020

gold good or bad

My grandfather use to say that in our time gold use to be 10 Rs/- per ten gram, and today price has increased like anything.  If we could have purchased gold at that time today we could have earned lot of money. Learning from this talk is gold is really good investment. Many of us use to invest in gold, thinking gold is not only visually appealing, but also valuable.

We believe that yellow metal Gold is safe heaven it can hedge against inflation. This belief is also backed up by facts like Gold price history shows always increasing trend. For reference you look at gold price detail of past 60 years given below.

gold price movement

Do not miss below posts -
  • 5 Best Gold ETF for Investment in India 2019
  • Gold will double your money in just 3 years
  • Gold Price Vs Silver Price – Historical Returns

Gold as investment can be viewed from Individual investor level or Economy level.

Gold Investment from Individual’s Viewpoint:-

Many Gold investors & trader have earned lot of money by investing in gold. Hence gold is good investment class for majority of investors from individual viewpoint.  But on other hand we have other type of investor who doesn’t believe in gold.

They says that gold is appreciating asset no doubt about it, but truly speaking Gold is nonproductive in nature.  If we talk about investment guru warran buffet he heats gold like anything. Gold has very limited industrial usage and for individual gold is just used for wearing if it is in form of jewelry but if it is in form of coin or e-gold it is nothing but dumb investment if it appreciate you will gain something else nothing.

Individual believing that gold is good for investment are more compare to others believing gold is bad for investment.

Gold Investment from Economy Viewpoint:-

Recently you must have gone through news finance minister of India requesting Indians about Don’t Buy Gold for Economy’s Sake. This is because if we purchase gold it directly impacts current account deficit and in turn our economy. Let’s understand this in detail.

Today dollar price is close to 60 Rs/- Gold price has direct relation with dollar. India imports gold from international market. To purchase gold we need to pay dollars for which our FOREX get affected. Gold purchases are one of the biggest contributors to India’s current account deficit.

Our major portion of Forex reserve is used for importing GOLD from outside. To invest in gold for personal benefit our other requirement of economy like metal, consumable other imporated items are going for toss. Study shows that India use majority of Foreign exchange reserves for purchasing gold. That is the reason government keep on saying us not to purchase gold if it is not required. But as a human nature we keep on purchasing gold.

Gold price is going up because people are buying it, and people are buying it because it’s going up. The day when people stop purchasing it gold will crash.

Remember gold has no production capacity & no usage it is just used for wearing in terms of jewelry or used for keeping in locker till it value appreciates.

So if you are believing that gold is good investment one day it will appreciate and I will sell it sounds good for individual but not good for economy.

What is your viewpoint ‘Gold as Investment Good or Bad’; post your comment in section given below.

Tweet
Share
Whatsapp
Pinterest
Prev Article
Next Article
Tags:economy gold gold data gold economy gold history gold past data gold price good investment

About The Author

Raviraj Parekh

Raviraj is the man behind moneyexcel.com. He is PGDBA, engaged in blogging for 10 years. Moneyexcel blog is ranked as one of the Top 10 Personal Finance Blog in India. He is not affiliated with any financial product, service provider, agent or broker. The purpose of this blog is to spread financial awareness and help people in achieving excellence for money. Please note that the views expressed on this Blog/Comments are clarifications meant for reference and guidance of the readers to explore further on the topics. These should not be construed as investment advice or legal opinion.

One Response

  1. Md Minhaj Alam

    Gold is bad for investment

    August 4, 2014

Leave a Reply Cancel Reply

Search

Top Posts & Pages

  • Income Tax Calculator FY 2020-21 (AY 2021-22) – Excel Download
  • Rakesh Jhunjhunwala Portfolio Holdings - March 2021
  • Download Income Tax Calculator FY 2021-22 (AY 2022-23)
  • 20 small manufacturing business ideas with low cost
  • How to check Property Records and Land Records online in India?
  • Cash Deposit Machine Locator – How to find CDM Near You?
  • LIC Premium Paid Certificate Download For Income Tax Purpose - Online
  • 235 Small Business Ideas with Low Investment in 2021-22
  • Top 60 Manufacturing Business Ideas
  • 10 Best Small Trading Business Ideas

Subscribe to Blog via Email

Join 5,475 other subscribers

Follow MoneyExcel

Money Excel – Personal Finance Blog

Personal Finance Blog
Copyright © 2021 Money Excel - Personal Finance Blog
| About |Downloads | Contact Us | Sitemap | Disclaimer | Privacy Policy |