According to Adhil Shetty, CEO at BankBazaar.com, most risk-averse investors look for safety, liquidity, and returns before investing and gold has delivered 9.8 percent annualised CAGR returns in the last 10 years, making it a safe illiquid investment.

Is gold a sensible investment?

With a reputation as a safe haven at times of uncertainty, gold tends to rise at times when other assets are falling. Yet despite its allure and popularity, many experts say that holding gold is not a sensible investment move – particularly after its recent climb.

Will gold lose its value?

Gold is an unproductive asset. Unlike shares or bonds or deposits, money that you invest in it does not contribute to any kind of economic growth. A pile of gold will stay the same pile of gold no matter how much time passes. The value of gold has always been driven by the fear that other asset classes will lose value.

Why is gold a good investment in times of inflation?

When investor confidence is shattered (as it was in 2008), gold prices climb as nervous investors looked for a safe place to put cash pulled out of the market. Gold is a haven in times of inflation because it retains its value much better than currency-backed assets, which may climb in price, but drop in value.

How is investing in gold similar to investing in other securities?

Investing in gold securities is similar to investing in any other security, except prices may move with the stock market. For example, if you are investing in gold mining companies, the price of the stock may reflect the company’s financial health and market position more than the price of gold.

What do you need to know about buying gold?

Like any investment or financial asset, gold is subject to supply and demand pressures that cause the price to fluctuate. Investors should start by looking at the spot price of gold, which is what it can be bought and sold for at that moment. The spot price of gold is quoted per one gold ounce, gram, or kilo.

How is gold a good investment for retirement?

If you are purchasing gold for your retirement account, you must use a broker to buy and a custodian to hold your gold. As a general rule of thumb, financial experts often suggest that you not have more than a small percentage of your assets in gold. This is believed to be good advice because it acts as an insurance policy.