Home / Money / Personal Finance /  Why glittering gold continues to woo millennials

Our fascination with yellow metal isn't very recent; it dates back to ancient times. Pharaoh rulers of Egyptian Civilization chose to be mummified and buried in the Pyramids with their gold about 5000 years ago! Such was the charm and promise of the precious yellow metal.

Gold has long been an important component of every healthy, well-balanced investment portfolio in economies worldwide. Indians, in particular, have continuously reposed their faith in gold as far as investments are concerned.

Aside from being a symbol of wealth, our ancestors used gold as an all-weather investing strategy to protect them from any financial misfortune. As a result, millennials have seen gold as the first form of investment. It was part and parcel of their cultural and economic life. Things have not changed much since then, and the metal has shown its durability and shelf-life, growing more potent as an investment option over time. Even today, Indians continue to buy gold more than ever due to multiple factors.

Vidit Garg, Director, MyGoldKart lists out why the yellow metal remains to be a preferred investment choice for millennials:

India - World’s Biggest Gold Market

Today, India is the world's largest market for gold- such high figures simply reflect our country’s interest in Gold. The recent financial crisis sparked by the COVID-19 pandemic has re-energised the enthusiasm, a study has reported a 37% rise in demand for gold in the first quarter of 2021. Due to multiple options and ease of investment, gold remains a lucrative investment option for millennials.

Multiple Investment Options

Apart from cultural, economic, geopolitical, and pandemic factors, investing in gold has gained more traction among millennials due to its stability, easy liquidity, low volatility, and perennially high demand. Unlike other investment options, staking in gold has always been hassle-free as far as ease of transactions -- buying and selling -- is concerned. Moreover, multiple channels of gold investments have emerged over the last decade. Today, people can invest in Gold Futures, Gold Coins, Gold Companies, Gold ETFs, Gold Mutual Funds, Gold Bullion, Gold Jewellery, and Digital Gold. So, gold retains its lure among investors in the market of fluctuating options.

A Hedge Against Uncertain Times

The financial crisis during the peak of the pandemic again proved gold’s standing as an excellent hedge against inflation. It served as a buffer against the highs & lows of the financial markets in the last 18 months. Historically, during such periods of uncertainty and disruption, prices of gold have been the most stable. Hence, it can be concluded that yellow metal has traditionally served as a shock absorber in challenging economic times and continues to do so even now.

Road Ahead

Gold continues to appeal to millennials as one of the safest investment options. With the passing years, gold investment has taken on new forms, yet it remains as valuable as ever. Recent investment options like Digital Gold have made gold a hassle-free investment choice for millennials. With multiple options, handsome returns, and shock-proof ROI, the stability of gold continues to woo the new-age investors and holds a promising future for youngsters.

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