Beyond the Bling: 3 best investment assets for women in gold
Investing empowers women with financial independence and long-term security, creating wealth for the family. Yellow gold provides stability, security, and acts as a hedge against losses, offering easy liquidity and protection against inflation risks.
Investments have always been synonymous to ladies, however with planned investment taking over, it has given women with financial independence and long-term security which empowers them to create wealth for the whole family and provide a safety net in the face of unexpected emergencies.
When it comes to investing, making the right choice is crucial which includes a healthy mix of stable investment avenues i.e. FD, gold, bonds etc. & volatile investment options i.e. mutual funds, stocks, shares etc. Investing in stocks, whether through equity or mutual funds, comes with the risk of financial loss due to market fluctuations.
Also read: Gold and silver prices Today on 19-03-2024 : Check latest rates in your city
On the other hand, yellow gold is a tangible asset that holds intrinsic value and is not subject to depreciation or high volatility like other assets. Gold is a good investment portfolio diversifier, providing stability, financial security and acting as a hedge against losses in other asset segments, while also offering easy liquidity and protection against inflation risks.
Investing in physical gold, such as coins or bars, is a popular way to safeguard your wealth and it is recommended to go beyond the bling and stick to investing in yellow gold jewellery rather than modern variants like rose gold or white gold or gemstone heavy jewellery as yellow gold’s value is the easiest to be appraised in case of any urgency. Moreover, in times of financial crisis or emergencies, owning physical gold can be incredibly useful, as you can convert it into cash quickly.
Also Read: Gold miners enjoying record prices are wary of hedging their bets.
When you need quick access to cash, gold loans are amongst the most attractive borrowing options as your gold remains intact and secure in a bank locker, when you repay the loan the value of your gold appreciates with time. Additionally, contemporary financial instruments offer more convenient and secure ways to invest in gold, here are some popular options:
Sovereign Gold Bonds (SGBs): Issued by the government, these bonds offer guaranteed returns along with the underlying value of gold, making them a secure and low-risk option. They come with a fixed lock-in period of eight years, and they also provide a fixed interest rate of 2.5% per annum paid semi-annually on their nominal value ranging from minimum 1gm to 20kg. Gold certificates of SGB can be converted into physical gold.
Gold Exchange Traded Funds (ETFs): These are essentially mutual funds that track the price of gold. They offer high liquidity, allowing easy buying and selling on stock exchanges, and eliminate storage and security concerns. However, unlike SGBs, they do not guarantee returns, and their value fluctuates with the gold price.
Digital Gold: This is a convenient and accessible way to invest in smaller quantities of gold like gold SIP starting from ₹500, EMI gold, and easily liquidated into physical gold. Women who wish to own gold can invest over a period by purchasing units online representing a specific amount of gold, stored securely by the platform. However, the safety of digital gold depends on the platform's credibility, and some platforms may charge storage fees. Storage cost is negligible and wealth tax is not applicable.
Also Read: Gold price may touch $2300 level by end of September 2024
Before venturing into any investment, including gold, it is essential to educate yourself. Research the different options, understand their associated risks and returns, and consult with qualified financial advisors to develop a personalised investment strategy. Remember, knowledge and informed decision-making are the true gold standard for successful investing. Therefore, it is highly recommended that women take advantage of this opportunity and start investing as soon as possible to secure a bright and stable future.
Mehak Srivastava, Head Of Marketing, SahiBandhu Gold Loans
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First Published:19 Mar 2024, 03:07 PM IST
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