All That Glitters

An Indian’s love for gold cannot be measured but the return on its investment can. Anindita Ghosh helps you invest wisely in the yellow metal.

What’s the one metal that people never shy off from purchasing, and aspire to get more and more of? You guessed it right, the shiny yellow one—gold. According to the World Gold Council, India is the second largest consumer of gold after China, and a whopping 20-25 per cent of all the gold produced in the world is consumed by our country—in the form of jewellery, bars, and coins. The metal owes its popularity to being considered auspicious across communities, and is a symbol of wealth and status. It is also valued as a portable and secure form of investment. Here’s the lowdown on all the avenues for investing in the precious element.

Jewellery and coins

Upside: Rohan Sharma, managing director, RK Jewellers, Delhi, says holding gold could provide financial stability during periods of economic recession, as it doesn’t lose value. “In fact, gold prices stay the same, and have known to increase over the last few years. For purchasing gold jewellery or coins, people don’t need to have any technical knowledge. Easy procurement, steady demand, and stable prices make it a safe investment option,” he says. In times of need, gold can be easily liquidated too.

Downside: In case of jewellery, about 5-8 per cent of the value is deducted as making charges when sold. It may be a safe investment option, but gold doesn’t give you any income in the form of dividends or rent, neither does it offer any tax benefits. And, of course, stocking up on gold carries the risk of theft.