Among the many investment options available, gold bullion remains a popular choice. Indians have a history of being fond of gold, whether it is in the form of Jewellery, coins or gold bars.
Gold has historically been used as currency across the globe and has retained its value over the ages. Even today a country’s gold reserves are a sign of its financial stability. If you are wondering whether buying gold bars is a prudent option, read on for some of the many reasons that make them a wise investment.
Less Expensive than coins or Jewellery
Gold Jewellery may be more utilitarian, and embossed gold coins may be prettier with their intricate designs, but both these options are priced higher than plain gold bars.
If you are looking for an investment which gives you better value for money, gold bars are the right choice for you.
Easier to store
A gold bar is more compact than gold coins or gold Jewellery of the same weight. Gold Coins which are plain are priced at par with gold bars, but ones which are embossed are priced slightly higher as making charges are included. Available in smaller denominations, coins are more frequently bought as they are more affordable.
Designed for ease of storage in times when they were commonly used as currency, they remain the preferred option among those who are buying to save for a rainy day.
They are a Tangible Liquid Asset
As gold bars are a tangible asset you can carry them wherever you move, unlike property. Historical trends establish that while the value of gold may fluctuate slightly, it is never expected to lose all value. No matter where you go, you are sure to find a buyer for gold. Moreover, the supply of gold is inelastic because it is a natural resource which is mined, and a new mine is a rare find.
Now that we know why gold bars are a better choice than gold coins or gold Jewellery, here are a few reasons why they are considered a secure investment option:
There is no Counterparty Risk
Owning gold bars does not involve a contract or interaction with other parties or middlemen. Once you have bought them, you hold them as an individual.
While the value of stocks or shares may depend on the state of the economy Gold bars are not subject to any market fluctuations. Gold is not easily damaged, not even by fire and water, and is thus more secure than many other forms of investment.
It Can be Used to Hedge Stock Market Investments
Owning gold enables you to maintain a diversified portfolio along with other form of assets. In addition, you can hedge it against losses in other assets.
According to the research of Trinity College, a gold hedge is the safest against the potential stock market crash. Stock market trends indicate that the value of gold rises whenever the stock market crashes.
Making the Right Choice
With the market for gold Jewellery moving online, it is now possible to buy gold bars and gold coins online. Choosing a reputed store like Vaibhav Jewellers ensures that you have the assurance of quality.
Whether you are buying gold bars or gold Jewellery online with Vaibhav Jewellers state-of-the-art video shopping facility you can now see the product before placing an order. Buy 24K gold bars from Vaibhav Jewellers to secure your future!