Here are some reasons why you should say yes to gold investment in India:

• Assists in Beating Inflation

Historical returns are a proof that gold retains its value over the long term and helps in beating inflation. This is primarily because gold’s value increases with the cost of living, and often peaks during high-inflation periods.

• Portfolio Diversification

Investment in gold provides a much needed level of diversification to your investment portfolio, which is essential to balancing the risk-reward ratio. Since the value of gold is inversely proportional to stocks and some other traditional investment options, gold investment in India can behave as a safety net amid market volatility.

• Supply and Demand

Given that gold is a natural resource, there is a limited supply of this precious yellow metal. This means that there will always be a demand for gold, and such constant demand for gold amid its limited availability is what makes gold a good investment option in India. Gold demand is also high, especially in a country like India, because of its cultural significance, as no auspicious occasion is considered complete without gold, whether its your marriage or a child's birth.

• Liquidity

One of the biggest benefits of gold investment in India is the yellow metal’s high degree of liquidity. Gold’s liquidity helps investors sell it or take a loan against it during times of financial emergency or whenever they need immediate funds.

• Stabilizes Against Currency Devaluation

Another reason to say yes to gold investment in India is the yellow metal's ability to stabilise against currency devolution. Unlike even the strongest currencies that lose their value during uncertainties in the financial markets, gold is an asset class that often protects investors from currency devaluation.

• Valuable Assets during Crises

Gold is often called the 'crisis commodity' because of the yellow metal's ability to retain its value and survive even in the worst of times, such as geopolitical and financial uncertainties. This is why many countries around the world have huge gold reserves to combat any adverse situation.

• Simple to Own

The ease and convenience of buying gold in various forms is what makes gold investment in India a popular and wise choice. Gold investment can be made through physical gold, digital gold, gold mutual funds, gold exchange traded funds (ETFs), RBI’s sovereign gold bonds, etc. The presence of such different options gives investors both the flexibility and ease of buying and selling gold.

• Returns

Historical returns of gold indicate that this precious yellow metal often beats inflation. Irrespective of the market and economic scenario, gold has always managed to rise and provide significant returns, especially over the long term.