Gold Rate Today: How to Check the Best Time to Invest in Gold?
New Delhi : The precious yellow metal has become a leading investment tool for many people across the globe. The feature of safe investment makes gold the most popular investment tool in India as well.
However, experts suggest that one must make investments on some calculated grounds. Otherwise, there is always a risk of losing your money. Nevertheless, the ever-rising graph of the gold rate today depicts a significant increase in the price after every ten years.
Therefore, today we will understand what makes gold so unique that everyone runs to invest in it. Moreover, we will look at the situations where one must invest in gold. This blog will enable us to decide the best time to invest in gold.
What Makes Gold a Popular Investment Tool?
The price of gold per karat has doubled from the last decade to the present day. The gold rate today is higher than it has ever been and continues to increase. Moreover, every advancing quarter gives a substantial return on investment.
Factors like tax deductions under section 80C of the Income Tax Act, asset's tangibility and portfolio diversification make it a popular choice. In addition, it can be a helping hand to beat inflation. Such factors contribute to motivating people to make investments in gold.
Another primary reason people in India buy gold is because of traditions and beliefs. Indian marriages have many practices wherein the groom and bride's family exchange gold jewellery on many occasions. In addition, buying gold at festivals is also considered an auspicious activity. Now, let's discuss the best time to invest in gold.
When is The Best Time to Invest in Gold?
The time to invest in gold is anytime. But the question is, what is the right time? The answer to this question is the urgency of investing. It varies from person to person. Therefore, irrespective of the gold rate today, here are times when investing in gold is correct.
1. Know When the Prices are Down
The gold rate today is more than ever, but it goes up and down. The gold's price can fluctuate by a few rupees now and then. This slight difference has a significant impact when the purchasing quantity of gold is high.
People tend to invest by purchasing an extra gram of gold at the present rate. This, in future, can cover the cost of a few grams. Therefore, analysing the price chart of gold becomes vital to make profitable investments. Moreover, if it is a short-time investment, it becomes risky to make investments without prior knowledge about the price.
2. The Quantity of Gold Matters
Gold investments highly depend on the quantity purchased. Few investors suggest that buying gold in small quantities can be beneficial but only in the long term. On the contrary, buying more gold impacts the investing amount. However, it inversely affects the profit margin on the invested amount.
3. Know the Investing Gold Profile
The gold rate today we see is only the base price. There are numerous ways to buy gold for investment purposes. Apart from buying physical gold in brick form or jewellery, one can also purchase it through mutual funds. In addition, it can be in the form of gold mine stocks or exchange-traded funds.
The investing amount and returns can vary depending on which profile we are investing in. So, knowing their profile is the right time to invest in gold. This will enable you to compare the price, risk and return on your investment.
4. Save on Taxes
As per Government regulations, gold comes under the tax-saving category of investing instruments. An individual can claim deductions on their taxes by making such investments. Moreover, in return, they are getting a safe investment. A popular way to save taxpayers extra cash is using Section 80C of the Income Tax Act.
5. Portfolio Diversification
Seeing the gold rate today, one must acknowledge that portfolio diversification is the need of the hour. Investing all your money in one place can put you at risk of losing your investment. Moreover, putting your money on gold in different ways can secure your investment.
6. Special Occasions
Indians are famous for buying gold at festivals and for marriages with open hearts. These special occasions are auspicious; hence, they buy gold regardless of the gold rate today. Moreover, one can get many promotional offers during the festive seasons. Therefore, it is one of the best times throughout the year to make investments.
Final Words
Buying gold for investment purposes requires a lot of thought. It is a popular investing instrument and one of the safest ways to secure good returns. However, there is still a specific time to buy it. Saving taxes as per Section 80C of the Income Tax Act, the quantity, form and price of the gold also influence the right time to buy gold. Now, you know everything. So, decide which time is the best for you to invest in gold.
