Gold as an investment option in India - Should you buy?

Gold and India have a very long history. Gold has its presence in the country since Gupta dynasty. Gold coins were first introduced during that period. Since then it has been very popular in the society. Among all the precious gems and stones, gold jewelry is highly preferred and widely used. Though it is very hard to estimate private gold ownership, sources believe it to be around 15,000 metric tonnes in India.

Other than this investors also see gold as a good investing option. Firstly, this divides their risk and secondly, over a past period of time gold rates have significantly increased.

With all these aspects gold has been the element of interest for all. People are mostly found conscious and seemingly interested in knowing present gold rates, gold trends, any new about gold, the scope of investing in gold, different methods of investing, pros and cons of investing and a whole lot of things. Searching multiple different sites for all this stuff is ineffective and tiring. FinVizer has done a good amount of research on your behalf and have come up with all the data and details from historic gold rates to gold rate today in India.

Read on and find out all that you need to know about gold.

To know the gold rates in India since 1940 see below:
Find out trends for gold rates in International markets.

Also, know the exchange ratio RS/USD. Analysis and trends.

See graphs and gold rate charts above which explain the gold price variations over the last 50 years.

Know gold price in India today- a detailed statistics.

Indian history with gold
India and gold have a way back long history. People at that time also were very much fascinated by this metal. Though at that time gold was mainly concentrated among the highly rich gentry. Royal families and rulers used to own it. It was one of the basis to compare power and wealth between two kingdoms or states. Just as now we use different parameters to compare the economic power of nations, gold was an important factor at that time. This is one of the reasons why rulers at that time were keenly interested in gold.

Historical uses of gold
As gold was used as a factor of comparison, it is clear that was part of the wealth that a state holds.
Gold was largely used as a currency. Gold coins were in practice in economic activities like trading etc. The cost of goods and services that a trader would provide were estimated or settled as per the number of gold coins. The comparatively cheaper goods were traded in some inferior metal coins. So people would use gold as we use notes nowadays.

Historically gold was not used as an investment. Initially, it was kept more for buying and selling purpose rather than keeping it as an investment. People were neither interested nor aware about this role of gold.

It was only later when the gold prices hiked and availability of gold became costlier so the people started holding gold back and not using it in trading activities. As time proceeded, the role of gold became largely that of an investment and its use as a currency diminished. Presently, we are owning gold only as an investment and are not using it in any way for buying and selling of goods and services.

Gold-related investing options in India

Over the past period of time, gold has become a major source of investment. People tend to invest their surplus incomes by buying gold jewelry, gold coins or gold bars. Observing these trends, many schemes and options have come up to enhance this practice.

a. Buying the metal
One of the most popular and widely used methods of gold investment is to buy gold in any form, be it gold jewelry, gold coins or gold bars. As the gold rates increase over time one may sell his/her gold if required or else can keep it for later appreciation.

Know the gold rates and gold prices. Get international and Indian trends since 1950. Analyze before you invest.

b. Gold ETF or Equity Traded Fund
This is a great scheme for an ideal investment. ETF is a mutual fund scheme. Just like we invest in a company by buying its shares, here you invest in gold.
Under this scheme people virtually buy gold. For example, they put in Rs.3,000, so the amount of gold which costs Rs. 3,000 will be added to the person's account. You do not get any gold in hand but your account reflects the quantity of gold you own.
At the end of the scheme, the values of gold that your account hols is calculated with present rates and your earnings are given to you. One of the advantages of this scheme is that it is a no-risk equity. You are sure not to lose your money, unlike other equity shares. But as business ays higher the risk, high the profit and vice-versa, the returns are not huge. But this is good for someone to play safe.

c. Gold monetization
This is a government scheme. It has been recently launched by BjP government of 2014. This central government scheme mainly focuses on the gold that has been kept and blocked over a very long period of time and that carries no use for its owner other than that of investment. Let's see how it works.
ci. As per this scheme, you can take your gold which is not of real use to you and submit it to the government. The government will evaluate its value and credit that in your account. The value you own is blocked till the completion of the scheme but until that time you will receive a yearly interest. Later when it is time to withdraw your wealth, the government will evaluate the present value of gold that was given to you. Now here you get the option whether you want your earnings in form of money or you want it in form of a gold bar that holds equal value.
cii. Though this form investment blocks you some amount for few years this is great to put your gold on work that was otherwise kept useless with you.

To know more on gold investment, consult a financial adviser. An expert advice is always better than ten raw pieces of advice. Find your personal adviser now. Visit

Pros and Cons of investment in gold
Gold investment is one of the easiest and simple forms of investment. Still, many people are not certain about investing in gold and they seek to know whether they should go for it or not. Here are some advantages and disadvantages of investing in gold that will help you to take a good decision.

1. No risk
One of the major advantages of gold investment is that you are at a zero risk situation throughout the investment. The returns that you get are either equal or greater than the investment. Unlike the equity investment or shares, there is never a fear that your investment will be devaluated so to play safe gold is a good option.

2. Ideal for small investment
One of the problems that people face is where to put their surplus incomes. These savings are not so big that one can go for a property, so in this case, gold comes very usefully. You can periodically invest small amounts in gold with an assurity of it to grow.

1. Small appreciation
even though gold investments have no risk, the rate by which the value of your investment increases is very low. It takes a significant period of time to reap some real profits. So you need to be very patient while going for a gold investment.

Check out gold rates in India. See trends and analysis.

2. Money is blocked
This is a side effect of appreciation taking place in a long time. If you have invested in gold for some real benefits your money is blocked for a considerably long period of time.

Investing in gold is a choice of Indian society since long and is, of course, a good risk-free option. But huge investments in gold are not recommended from financial growth's perspective. You can invest small amounts to diversify your investments. But for large returns, other options must be considered.

To know more about investment options that suit your risk profile, talk to a qualified investment professional today. Visit to talk to handpicked investment experts who can help you meet your financial goals.


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