We have all heard from our parents that gold is the best form of investment one can do with their money. And so, they have stockpiled a lot of gold for generations and have taught us that it is the correct way to save up for the generation to come. Now is this the right thing to do in the modern world? In this blog we will discuss the pros and cons of hoarding gold in the modern world and what are the other ways you can invest in gold other than hoarding it.
In our cultural heritage, gold has always been considered “Streedhan” or wealth of the woman. The matriarchs of the household used to stockpile gold to hand it down to the daughters of the household to provide them with a part of the property while the boys got the land and other assets. But things have changed a lot since the days of the past. The government has made sure that both of them get the same. So it makes no sense to stockpile gold at our houses. Also, it is said that gold is one of the most universal forms of currency we can ever imagine. And in the olden days of conquest and looting, what can be a better way of starting your life in a new place than using gold.
But that isn’t true in the modern days. When we stockpile gold at our house, we are locking up our money in the locker with no hope of returns in the future or ever getting any money out of it except for the time sell. And when we buy gold as jewelry, we instantly lose value due to the mixing of other metals that are not paid back. Also, when we buy gold, we are overcharged with making costs and other ways.
Gold yields no income. No dividend or interest. It is not even like other assets that will be productive. Money invested in gold is money hoarded. The only claim to fame for gold is its merit as a store of value. Imagine a dire situation when you have to leave your home and run away as a refugee to another land. What would you take with you? Nothing except gold will have international currency and help you remake your life anywhere in the world. Gold is a store of value.
So, when you can use your money to earn in more democratic and intelligent ways, there is no need to stockpile up. So it is recommended that you don’t imprison your money in the bank lockers and go for places that pay you back, like stocks and mutual funds. And if you are ever in need of capital, we here at Adyama Gold Jewelers are always here for you. You can bring us all your unused gold and other precious metals, and we promise to provide you with the best rates and that too in the shortest amount of time. So, the next time you are short on cash, don’t worry. We are always here for you.