Gold is a precious metal which is one of the safest and most demanding for traditional investments. Gold is a highly liquid but scarce asset, which is not anyone’s liability. The biggest advantage of investing in it is that you can immediately convert it into liquid (ie cash money) when needed. Gold has a different value in the country and the world. There are some things about gold that very few people know about. If you also want to know some interesting information about gold, then let us discuss it.
First use of gold as currency
There was a time when gold was in use as currency. Gold was first used as a currency by the Lydian Empire around 700 BC. According to Kotak Securities, more than 200,000 tons have been mined, most of which were found during the California Gold Rush of 1849. Gold supported the global monetary system until 1971.
stock vs gold
Historically it has been observed that when the stock market is most pessimistic, gold performs very well. This gold price vs stock market correlation is valid for all world economies.
Where is all the gold in the world?
Of the total gold in the world, 45 percent is in the form of jewellery, while 22 percent is in the form of bars and coins. 17 percent of the world’s gold is kept in the world’s central banks. Apart from this, technical and other forms have 15 percent share.
Where has gold reached in the last few years
The price of 24 carat gold in India in 1964 was ₹63.25 per 10 grams. Today it has reached Rs 80,575 per 10 grams. This is shocking.
How to invest in gold in India?
You can invest in physical gold. Additionally, purchases can be made in digital gold (backed by 24 karat gold). You can also buy gold in the form of sovereign bonds. It is issued by RBI with annual interest. Apart from this, one can purchase it in the form of gold mutual fund. Gold ETFs are traded like equities.
Why does gold become more expensive?
Global demand, global market situation, geopolitical scenario, government policies play a major role in the continuous increase in the price of gold. Additionally, increase in demand during festivals like Dhanteras and weddings drives up gold prices.
This thing is in gold
Gold, a liquid asset with no credit risk, has performed well. It is a source of long term profit. A diversifier that can minimize losses in times of market stress.
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