Is Gold Investment Is Good       

          

For Many Middle Class People There Are Only Two Safe Investments - Real Estate And Gold. Real Estate Investment Can't Be Afford By All The People As It Requires Heavy Capital So Many Middle Class People Chooses Gold As The Best Investment For Themselves. So In This Article We Will Try To Understand Is Gold Really a Good Investment Or Is It Better Than Stocks And Mutual Funds. So To Understand Is Gold a Good Investment Or Not  We Have To Discuss Its Advantage And Disadvantage.

First We  Should Begin With Why People Likes Gold And What Are Its Advantages:-

1).  Other Than Its Attractive Look People Likes Gold As We Can Hold It Forever As There Is No Fear Of Rusting And Rotting And It Also Takes Very Less Space To Store. 

2).  Second Advantage Of Gold Is That It Is Decentralized And No One Has The Control Over Gold. Big Governments And Companies Also Cannot Control Gold. It Is Not Like Currencies Whose Price Could Be Decided By Government And  Could Print More.

3). The Price Fluctuation And Volatility Of Gold Is Very Less  If Compared To Other Investment Instruments Like Stocks And Mutual Funds Because Of Which People Consider It Very Safe.

Due To The  Reasons We Discussed Above Gold Is Very Popular In The Whole World And Considered As The Best Investment Among Most Of The People And So We Can Conclude  By These Points That Demand Of Gold Will Not Decrease Suddenly Unless a Big Reason Comes And If We Sell Gold We Can Easily Find Its Buyers And Risk Is Very Less In Gold. But Rather Than Only Discussing Its Advantages We Should Discuss Its Disadvantages Too To Come To a Final Conclusion. So Disadvantages Of Gold Are:- 

1).   Unlike Other Assets It Does Not Create Any Value Like Employment, Income And Is Not Beneficial For Country  It Is Only a Piece Lying Down. For Example Of Stocks, The Companies Of Which We Buy Shares Is Producing a Product And Giving Employment To  People And Is Beneficial For Country Too

2). Also Unlike Other Assets We Cannot Calculate The Intrinsic Value Or Real Value Of Gold As We Does Not Have Data About Gold Other Than Its Price Chart. So For Value Investors It Is Not So Much Beneficial.

3). It Cannot Grow At a Very High Rate And Make You Rich As If We Check Its 40 Years Data, Gold Has Annual CAGR Returns Of Between 8% To 10% Which Hardly Beats Inflation And Cannot Make You Wealthy  

After Discussing These Advantages And Disadvantages You Would Be Still In Confusion That Should We Invest In Gold Or Not. So We Can Finally Conclude That Gold However Safe Cannot Grow At High Rate And Make You Rich But It Can Preserve Your Capital For  Bad Times And Inflation And At Market Crash And Recessions It Grows At High Rate So If Are Not Able To Take Risks For Investment And Only Want To Preserve Your Capital Gold Is The Best Option Or If You Can Take Risks And Want To Grow Your Wealth Stocks Are Still The Best Investment For You