India is the world’s largest gold consumer and it imports more than 900 tonnes of jewelry pieces every year. Ours is a country which loves to celebrate its occasions with gold jewelry or gold coins. It is believed to be sacred and therefore is often used in weddings, festivals and almost all other occasions. Considered to be holy in its purest form, gold is an integral part of every Indian tradition and hence becomes the most commonly used metal in jewelry items.
Let aside India, Gold is considered as a luxurious metal other parts of the world as well. People all over the world are attracted towards gold jewelry pieces for some reason or the other.
If one comes to think about it, then the most common reason why people opt for gold is probably because it is a great mode of investment. People generally buy gold as a way of diversifying risk in a fluctuating economy.
Since the price of gold is relatively influenced by its demand and supply in the market, its investment, therefore, plays a much larger role than its actual consumption. Gold can be accessible in many forms today like jewelry, coins, bars or bullions and it all ultimately depends upon the budget and requirements of the investor. Is gold a good or bad investment option?
Is Gold a bad or good investment Option, then?
The prices of gold may fluctuate but it still remains a massive source of investment for all, especially businessmen. The service of exchange of gold plays a major role in the company’s economy. It is even noted that the newest phenomenon of “second-hand” jewelry has already established itself as a multi-billion industry over the world.
And if you consider buying gold simply on the basis of expenditure for wearing it as a piece of jewelry or simply using it on any occasion, then also it will undoubtedly create an opportunity to use it as an investment.
So, no matter whether you use gold as a medium of expenditure or investment, it will ultimately prove to be useful in both ways. You can use it for the purpose it is meant for, i.e. wearing it on special occasions and then can also create better investment opportunities.
Written by Abhishek Saraf. The writer is the proprietor of HG Jewels; the opinions are of his own.