5 Compelling Reasons for Making Gold Investments in India

Gold is in many ways ubiquitous to India; it is at the very core of Indian society and culture.

At the same time, the thought of gold as an investment is not often entertained. In India, its biggest usage by far is in the form of jewellery. The fact that gold can also be an investment – and that such gold investments make a lot of sense is often lost on many.

That is the reason, in this article, we highlight the benefits that come with making gold investments in India.

Constant Increase in Value

As an investor, you clearly want to see a rise in the value of your investments. With gold, that will never be a concern.

As gold prices in India confirm, you are looking at a constant increase in the price of gold. Any investment made in gold, say a decade or more ago, would have fetched truly handsome returns today.

This is clearly a compelling factor for you to actively pursue the prospect of making gold investments in India.

Unrelenting Demand

As we mentioned right in the beginning, gold is ubiquitous to India. There is practically no major social event (especially marriages) where gold is not a primary component in one form or the other.

No matter how much gold there may be in the country, the overall demand for it is simply insatiable.

This is surely a very pleasing scenario for anyone considering gold investments in India; when demand is clearly likely to be sustained, and supply would be at fairly limited levels, gold prices are surely going to maintain their upward trajectory.

Ease of Availing Gold Loans

Today, more than ever, it has become really easy to avail gold loans in India. Major players like Manappuram are present in various parts of the country and offer gold loans with remarkable ease; you can practically walk in with gold and walk out with money, all in really less time. After all, the money loaned to you is secured by the gold you pledge.

So if you have gold and happen to be in urgent need of funds, you can easily avail gold loans to get you the money you need. Once your need is met, you can always repay the lender and get your gold back.

Gold Investments in India
Gold Investments in India clearly make a lot of sense. Image Courtesy – Compare Remit

Immense Ease of Sale

In really extreme cases, say a major financial emergency, you might have to sell your gold in order to obtain cash and meet the financial emergency at hand.

In all such scenarios, it is really very easy to sell gold in India. Jewellers, banks and many other specialised firms happily buy gold while offering the best price for it.

So, the learning here is that gold has immense liquidity, contrary to what anyone else might tell you. Within no time at all, you can easily turn gold into cash which you can then use to meet the situation at hand.

Additionally, remember that in some scenarios, you can use the gold itself to make payment – say you are buying a car and you do have gold of reasonable value on you; some or part of the car purchase price can directly be paid with the gold that you have, without even having to convert it into cash first!

Easy to Store with No Chance of Damage

An investment in any item which can easily break/spoil or is perhaps cumbersome to store is not one you want to make. Gold comes up trumps on all such fronts quite comfortably, whereby it is really easy to store and is really not prone to any damage.

So, for example, even if you have gold tucked away in a safe for decades, there is nothing which is likely to happen to it.

Additionally, considering the high value of gold, one gold bar, for instance, can easily replace wads of cash. Multiply that with a few gold bars that you may have, and you can easily do away completely with all your cash reserves – which clearly carry numerous risks.


Gold investments in India clearly make a lot of sense and should be actively pursued wherever there is scope for doing so.