Written by : Knowledge Centre Team
2025-11-02
1192 Views
10 minutes read
Share
Gold is regarded by a majority of the Indian populace as one of the top investment possibilities in India. Gold is not only seen as a reliable long-term wealth generator but also as good fortune and an emblem of social rank in this country. Due to the stock market's significant swings this year as a result of the pandemic's financial consequences, several investors felt compelled to discover ways to safeguard their holdings. During this time, one asset, in particular, began to gain momentum: gold.
Interestingly, a few years ago, fixed deposits were thought to be more attractive financial possibilities for Indians in the middle class. However, because the interest generated on Fixed Deposits has decreased significantly in recent years, FDs no longer appear to be a viable wealth-generating alternative as they once were. People are showing a resurgence of interest in gold investment these days.
Gold, on the other hand, is a long-term asset that is not ideal for short-term gains. Furthermore, gold prices move in a cyclical pattern. As a result, one cannot expect gold to perform consistently well.
Must Read - What is Investment?
Six Reasons to Invest in Gold
For centuries, Indians were already dealing in gold, and it has shown to be a sound investment. Here are some of the best reasons to invest in gold:
- Gold Functions as an Inflation Hedge: In the past, gold has done better than equities or other investment options in high-inflation circumstances. There is no functional link between stock prices and inflation. However, because Gold is a commodity, its price rises when the economy experiences rising inflation.
- Investing in Gold won't Break the Bank: Compared to real estate (which demands a larger first investment) or stocks (which involve documentation to open a brokerage account), dealing in gold is simpler for most Indians and does not require a large initial expenditure.
- Gold Investment Provides High Cash Flow: If you hold a gold coin or piece of jewelry, you can simply liquidate it by selling it at a nearby jewelry store at any moment. Shares and mutual funds can also be quickly turned into cash. However, it may take a few days for such products to complete the reclamation and the selling cash to be credited to your bank account. Gold, in comparison to these securities, has a higher liquidity.
- Gold Investing can help you to Manage your Portfolio's Risk: It is fundamental to vary your assets in an attempt to lessen your investment portfolio. Because gold has a negative relationship with stocks, it might be a practical way to diversify your portfolio. A theoretical loss on your equities portfolio might be sustained by your precious metals anytime your stock account is in a bear market.
- No Specialised Knowledge is Required: When purchasing stocks or mutual funds, you must have a basic understanding of the market and economics to make the best selection. Such in-depth knowledge of the market isn't required with gold. It is uncomplicated and simple to invest in, making it suitable for all types of investors.
- It will Always be Valuable: An agreement to pay is what money is. Gold, on the other side, does not demand such assurance. It's the only speculative investment that isn't also a liability for someone else. Gold prices have never fallen to zero in its 3000+ year history. As a result, it will always be valuable and robust, even if the market falls apart.
How to Correctly Invest in Gold?
- Investing in Gold ETFs: You need not buy actual gold here because gold ETFs are a non-physical form of gold investment. However, you can invest in a gold-backed Exchange Traded Fund (ETF) whose value fluctuates with the price of gold. Dealing in gold ETFs is similar to owning gold; the only difference is that investors don’t get to keep the golden metal. It is stored in your Demat account and it is in Demat form.
Here is everything you need to understand about ETF Investment - Gold Mutual Funds: A gold fund is essentially a collection of ETFs. You can then purchase these funds and invest in Gold ETFs indirectly. You won't need a Demat account to participate in ETFs if you do it this way. You'll have to pay the fund manager a management charge. You can invest everything at once or utilise the same reliable SIP method as other mutual funds.
- Keeping Physical Gold: You could also purchase gold coins or gold bars if you have a strong desire to maintain physical gold. Gold coins and bars can be purchased from banks or a local merchant. Banks usually sell gold coins at a premium and do not repurchase the coins or bars.
So, purchasing from institutions can be a little complicated because when you're about to sell it, you'll have to go to a jeweler, who likes buying from fellow jewelers due to the way gold trading in India is structured.
If you're considering adding gold to your asset base, we hope this article has given you a better understanding of gold investing. Remember to examine your financial goals, investor's risk, and asset allocation before making any investment.
Worried About Emergencies? Start Planning Now
Enter OTP
An OTP has been sent to your mobile number
Didn’t receive OTP?
Application Status
Name
Date of Birth
Plan Name
Status
Unclaimed Amount of the Policyholder as on
Name of the policy holder
Policy Holder NamePolicy No.
Policy NumberAddress of the Policyholder as per records
AddressUnclaimed Amount
Unclaimed Amount
Sorry ! No records Found
Request Registered
Thank You for submitting the response, will get back with you.
Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.
Recent Blogs
Types of Financial Planning: Key Strategies for a Secure Future
18 Feb '26
902 Views
Different types of financial planning guide your decisions at every life stage. Plan wisely from your first paycheck to retirement with Canara HSBC Life Insurance.
Read More
Financial Planning
Difference Between Financial Year (FY) vs. Assessment Year (AY)
16 Feb '26
1196 Views
7 minute read
Find out what is Assessment Year (AY) & Financial Year (FY). Visit this section and understand the difference between Financial Year and Assessment Year.
Read More
Financial Planning
Tips to Keep Financial Records Organized Effectively
12 Feb '26
619 Views
5 minute read
Learn how to sort, store, and manage your financial records with ease. Improve control and reduce financial stress.
Read More
Financial Planning
Financial Instrument: Meaning, Types and Importance
10 Feb '26
2684 Views
8 minute read
Financial instruments are essential to build and boost your wealth. Know the types of financial instruments available in India. Explore more about the tax benefits of financial instruments.
Read More
Financial Planning
Is SIP Tax Free? How to Start SIP To Save Tax on Your Income?
09 Feb '26
4420 Views
10 minute read
SIPs are one of the best tax-saving investments. Learn if SIP is tax-free under Section 80C of the Income Tax Act to plan your finances.
Read More
Financial Planning
Purpose of Financial Planning and Control in Money Management
16 Jan '26
3890 Views
10 minute read
An explanation of financial planning and control, focusing on budgeting, monitoring expenses, managing resources, and supporting long-term financial stability.
Read More
Financial Planning
PPF Account Basics: 7 Questions to Consider Before Opening
07 Jan '26
906 Views
6 minute read
Seven important questions to consider before opening a PPF account, covering eligibility, lock-in period, returns, and withdrawal conditions.
Read More
Financial Planning
Why Does Liquidity Matter in Financial Planning?
02 Jan '26
1052 Views
8 minute read
Learn what liquidity means in financial planning, why easy access to funds is important, and how liquidity helps manage emergencies and short-term needs.
Read More
Financial Planning
What Is the Right Way to Start Investing in Your 20s?
28 Dec '25
1081 Views
10 minute read
Learn how to invest in your 20s by balancing risk, building good habits early, choosing the right assets and setting the foundation for long-term wealth.
Read More
Financial Planning
Financial Planning - Top Selling Plans
We bring you a collection of popular Canara HSBC life insurance plans. Forget the dusty brochures and endless offline visits! Dive into the features of our top-selling online insurance plans and buy the one that meets your goals and requirements. You and your wallet will be thankful in the future as we brighten up your financial future with these plans.
Fixed Returns, Zero Risks & Worries
iSelect Guaranteed Future Plus
- 4 Plan options
- Life cover + Guaranteed benefits
- Accidental death benefit
- Premium protection cover
Save, Dream, Plan. Live Peacefully
iSelect Guaranteed Future
- 5 Plan options
- Option to choose PPT
- Get Tax benefits
- Premium protection cover