Why should women reconsider their choice of physical gold as an investment asset?

Indian women have always been known to buy gold jewelry, it is even considered by many as an investment. The practice of investing in gold is even correct to the extent that the yellow metal still appears to be the savior of investors in a context of market volatility. However, women have many reasons to reconsider their position when it comes to investing in physical gold. Investing in physical gold comes with challenges such as issues with storage costs, impurities, etc.

There are also additional manufacturing fees that are added when purchasing gold jewelry that are lost when returning the jewelry for a new one. Take a look at all the reasons why women should stop investing in physical gold and look for better ways to invest in the yellow metal. Here are the reasons why women should not invest in gold jewelry.

Physical gold requires storage and security

Purchasing gold jewelry or physical gold not only requires money, but the purchased item must be kept secure, either in the bank or in a locker to avoid the risk of theft and burglary. Besides the security issue, purchasing gold in the form of jewelry requires the buyer to pay additional manufacturing fees that cannot be refunded.

Impurities

There is another problem related to the purity of the yellow metal purchased. If your purchased jewelry does not have a BIS Hallmark label, it is difficult to know whether the gold used was pure or not. This is why gold jewelry will not bring the desired returns if you sell it to the jeweler after a while.

Lack of interest earned

If the amount of money spent to buy gold had been deposited in a bank or invested elsewhere, it would have earned the same amount of interest. But the same is not true for physical jewelry. The only benefit this brings is in the case of a rise in the price of gold.

Liquidity

When it comes to gold jewelry, there are certain feelings attached to gold. It never remains more than a simple tool of investment and becomes an emotional asset for the person or family. The added emotional value of a piece of jewelry makes it difficult to exchange when people need money.

Apart from the following disadvantages when buying physical gold, better alternatives for investing in the precious metal will definitely convince you to abandon the conventional method of investing in gold and try new methods.

Gold ETF

Buying gold exchange-traded funds (ETFs) allows investors to buy the metal at real-time prices without any hassle. Gold ETFs are mutual funds that track the domestic price of physical gold. The money invested is used by them mutual fund companies to buy gold bars. Gold ETFs are listed on stock exchanges and allow investors to buy and sell Gold ETFs units on the same day.

Digital gold

Customers can also explore the option of purchasing “digital gold” using payment apps such as Pay, PhonePe and Google Pay. Buying Digital Gold allows users to purchase gold from Re 1. These payment apps have collaborated with MMTC – PAMP (a joint venture between the public sector MMTC and Swiss company PAMP SA) or SafeGold to sell gold.

Sovereign Gold Bonds

Sovereign Gold Bonds are one of the best and safest ways to invest in God. These bonds are issued by the RBI and represent grams of physical gold. People can buy SGBs from banks, post offices, Stock Holding Corporation of India and authorized stock exchanges in India. The minimum investment quantity in SGB is one gram.