Many people would just not like to have some amounts as an investment in financial assets when they retire. For them, it is also important to have some real assets to show the world. This is fulfilled by gold. Gold is a common asset class present in the portfolio of Indians. This has been a traditional favorite of Indians over the years, as Indians love to have gold in various forms. It is considered a good hedge against inflation.
More often than not gold is used for the purpose of jewelry and in several forms there is an impact on the form of liquidity that it will enjoy. This means that in all the forms that gold is present it will not have high liquidity like several other asset classes. There are issues with regard to the quality and the purity of gold that one has to consider and once again this is the asset class that will not have a regular income. A lot of the gain in value will be in the form of capital gains.
Routes For Using Gold
One can buy gold in bars and other forms. Buying bard is one way of owning gold when one is not sure about the use that this will be put to later. The other form in which Indians usually buy gold is through jewelry used to fulfill specific purposes that have been decided and the jewelry is used for that specific intent.
There is also the expectation that with the introduction of gold exchange-traded funds another avenue will open for Indians.