Is gold investment more appropriate than other investments?

Gold can be termed as the most favourite asset of India. Traditional Indian families give gold as gifts, and it is still quite popular to purchase or gift gold jewellery or coins on any auspicious occasions. Other than being highly liquid, it is also considered quite stable compared to the stock market and significant in terms of return too in comparison to fixed deposits.

Gold has numerous pros and cons in terms of investing.


  • High demand in India.
  • Stable in the face of inflation in comparison to other investments.
  • Steady growth – if you see gold in 10 years of analysis, it has a good and continued growth.
  • Collateral – you can keep gold as collateral against loans. And gold loans are quite popular in India.
  • Easy to acquire – Indian household women love to buy gold. It serves as a good investment, a great fashion choice and a rise in social status – all in one, plus it doesn’t come with hassles to buy.


  • Hoarding gold in physical form can be prone to theft.
  • As discussed above, women tend to buy gold as jewellery, which is subjected to charges on making jewellery. Many investors term this as a loss.
  • Gold comes in 18k, 22k and 24k in terms of purity which sometimes can be compromised.
  • One doesn’t earn any interest or dividend by hoarding gold.

Though there are cons to gold investments, it is still considered one of the popular forms of investment, and in a way, it is rightly so. A part of your portfolio investment should always be dedicated to gold.

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Tahir Ismail

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