Following the famous saying,” all that glitters is not gold”, it has always attracted attention and is indeed a popular investment mode. However, if someone were to point out the drawbacks of investing in gold, one would doubt this popular adage.
It is a traditional belief that gold is the best passive income source, and this belief has proven to be quite irrational. Any growth in the value of gold entirely depends on when someone is willing to pay more for it. Unlike other financial instruments, the money invested in gold does not contribute to the economy’s growth.
India is one of the largest gold importers in the world. Hence, this increases the fiscal deficit and further decreases the rupee power with respect to the dollar. When the value of rupees goes down, it paves the way for an increase in inflation. The modern financial system has a wide variety of asset classes that may perform better than investments made in gold. Hence, it only makes sense to invest in such asset classes.
Gold is best if it is viewed as an alternate currency. Whenever there is a rise in GDP, the prices of gold go down, but if there’s an economic downturn (recession), then prices of gold increase due to the huge demand and supply. Also, many investors are not aware that gold prices largely depend on the international markets; that is, any significant fluctuations in prices of gold internationally will affect the prices of gold in India.
People might find these factors hard to believe because of the stereotypical construct that has led them to believe that gold is the best type of investment, and there aren’t any influential factors that might lead its investors to its doom.
FlipitNews is the best app for finance, business, cryptocurrency (bitcoin) and share market news live in India. With FlipItNews you get the latest finance news, stock market news and business news in India delivered directly to your phone in 50 words or less. The salient features of the app include:
>> Get stock market recommendations from all the top brokers in India directly in a single screen. Add the stock to your watchlist or invest or divest as per the stock recommendation.
>> Understand the market mood and market sentiment by taking part of our daily stock market poll. This gives you an idea whether the market is going to be bullish or bearish in the coming days.
>> Have contextual and adaptive learning while reading stock or finance news. Our AI creates a perfect learning experience for you as per your usage pattern. Be a financial literate while just reading news.
>> Learn everything about cryptocurrency like bitcoin or ethereum. Never miss and important bitcoin news or ethereum news.
>> Finally our in-house share market experts have created a detailed share market tutorial for the beginners. Just browse through the tutorial section and learn everything about stock market investment free of cost. We have structured the section in a way so that you can learn from basic to expert level in a self-paced manner. This is the best share market tutorial app for the beginners in India. Our unique flip approach helps you to understand the basics first before going into the depth of the tutorial.
Sachin Raturi is the Co Author Of International Bestselling And Award-Winning Book “The Growth Hacking Book 2”.
Sachin has been a considerable contributor and firmly collaborates with various global organizations and start-ups. He has been working with many connectors and influencers throughout the world. His central goal is always to inspire people, to help others in finding their passion to be successful. He is known as one of the super-connectors in society.