Gold - one of the best investments

Gold has always been one of the steadiest form of investments, It has seen a stable growth over the years. 30 years back the price of 24K gold was 4700 INR for 10 grams, it is the year I got married and yes, we had to buy gold for the marriage as per our traditions. At that time also we found it expensive, because income was not much, and I had just got my first job so it was not easy at all. Though for the marriage it was my father who bought all the gold jewelry. And I would think that time that when my child will grow up, I will also have to do similar things and I could never anticipate where I would be in life 30 years down the line, so these thoughts would worry me. Considering all that, after my marriage, I made it a habit of buying some gold every year.

For us Indians Dhanteras is a very auspicious day to buy Gold, we believe it brings in good fortune. Every year on Dhanteras as a ritual I buy Gold, then it can be sometimes 1 or 2 grams also. I would save every month little for this, because again spending big chunk of money at once was not possible in those days. Then there were some financial difficult times in my life where I had to sell of some gold to get the money, so while it came in, it also went out, but over the years I could save up on little from what I have kept buying.

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Today the gold price is 99K INR for 10 grams 24k gold which is like 20 times growth in the last 30 years and I believe that it's the best form of investment always steadily moving up and no volatility. I would always put my finger first on this investment, it is a steady growth. For young people they can still think of saving a big amount in gold right now and then leave it for their retirement corpus. It will surely fetch them good money. Crypto investment is good, but it has lot of volatility, it will take many years for stability to come in the crypto market, and once stability comes, then it may not even attract that many investors. Right now, people think crypto as a short term get rich quickly investment scheme, though that's not the case.

With the price going up so much every year, it is becoming difficult to buy even little gold, and every year my quantity keeps going down. I feel it's still ok whatever I can buy, because even 1 gram of gold has a big value these days. In 2 months' time is Dhanteras again and I guess by that time the price of gold will cross 100K INR...phewww, that will be too much, but it's still worth it to invest in Gold, because it will only move up from whatever price you buy. It is one of the best forms of Investment.

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Absolutely correct. I have started to buy platinum side by side. Recently bought 10 grams bar of platinum. Let's see how far it goes.

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I have never thought about buying platinum, never tracked it also. But I am sure it will be a wise investment

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That's correct, but actually storing gold as an investment in indeed risky nowadays.!

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What are the pros and cons of storing physical gold in a bank locker?

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Well for years I have hold on to physical gold, I think it depends on the storing options one has, how safe they are

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Gold really is a reliable investment. Its value keeps growing steadily, unlike crypto and it feels good knowing even small amounts can be worth a lot over time. Hodl is a good option for me now because I'm not experienced with trading at all

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True, it keeps growing steadily and gives good returns

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I've invested in Sovereign Gold Bonds (SGBs) in 2024, and they've shown returns of around 80%.
What's your opinion on SGBs?

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I have never been in favor of bonds, I am not sure but I guess there are fees on transactions, and not sure about the tax part also. I firmly believe in keeping solid gold for easy liquidity at any given time. Though each one has their own preferences

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You won't be taxed if you hold this investment for over 8 years. However, if you redeem it sooner, you'll face taxes on your gains.

If you sell within 12 months, the gains will be considered Short-Term Capital Gains and will be taxed at your regular income tax rate.

If you sell after 12 months but before the 8-year mark, the gains will be taxed as Long-Term Capital Gains.

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