‘Real gold never loses its shine’, setting it apart from all other metals and making it one of the most sought out. This ornamental and aesthetic value; however, is just the tip of the iceberg when it comes to the benefits that gold offers.
From safety and security, to liquidity and price performance – Gold, as means of investment too, never loses its sheen!
The classic ‘safe haven’
Be it the financial crisis of 2008 or the pandemic in 2020 – Gold has outshined in times of uncertainty. ‘Fire is the test of gold’, they say – for when others perish gold withstands and outshines through the fire. Gold investments too, follow suit in times of economic uncertainty.
Case in point – As the Indian economy reeled under the pressure of a nation-wide complete lockdown from March 2020 to May 2020; gold prices saw a ~15% jump from Rs.40,825 to Rs.47,097 in just over 2 months. This rise continued through the peak of the 1st wave – rising to an all-time high of over Rs.57,000 in August 2020.
(Source – price data from ‘https://www1.nseindia.com/products/content/equities/indices/historical_index_data.htm’)
Even globally, gold has followed the same pattern – consistently outperforming other asset classes through volatile times.
(Source – https://www.gold.org/goldhub/research/gold-most-effective-commodity-investment-2021-edition)
Returns that do not lose their lustre
Being a consistent performer through the decades, gold has reinforced its position as a ‘store of value’ through both, the good times and the bad.
(Source – graph derived from data from RBI’s Annual Report – Handbook of Statistics on Indian economy dated September 15, 2021)
In fact, gold has grown at a double-digit CAGR of 12.68% over the last 20 year.
(Source – graph derived from data from RBI’s Annual Report – Handbook of Statistics on Indian economy dated September 15, 2021)
Outperforming debt yields and close on the back of performance of equities, gold has the potential of reasonable returns albeit at lower risk levels.
Stands out from the pack
Gold has not only proven its might in times of economic uncertainty but also tends to perform inversely in relation to other riskier asset classes.
(Source – NIFTY 50 data from -https://www1.nseindia.com/products/content/equities/indices/historical_index_data.htm
Gold spot price data from https://www1.nseindia.com/products/content/derivatives/commodity/historical_spot_rate_com.htm)
This negative correlation with other asset classes, can provide a unique hedge to your overall portfolio.
Store of value while protecting against inflation
With consistent returns closing in on double-digit figures, gold not only preserves your investment value but can also protect your portfolio from inflation
The icing on the cake
With unique investment mode offerings across the board, gold today has gained a position far beyond mere ornamental value. A unique commodity that clubs consumer appeal with investment worthiness, gold can boost your portfolio’s risk-adjusted returns.
And what’s more? You can get all these benefits through your ‘Digital Gold’ investments – from anywhere, at any time and for any investment amount!
- Easy Account Opening – You can create your Paytm account in a simple and hassle free process without paying any charges
- Minimum Quantity – You can buy gold on Paytm for as low as Re. 1
- Security – Your gold is stored in secure vaults which are 100% insured
- No Additional Fees – Paytm does not charge any fees for storage or insurance
- Delivery – You can avail delivery of your bought gold at your doorstep
- Click on the ‘Gold’ icon on the Paytm app to go to the Gold homepage
- Under the ‘Buy Gold’ section, enter the amount of Gold you want to purchase in Rupees or Grams
- Pay with your preferred payment mode to complete your gold purchase and the gold will be added instantly to your Gold locker
- Once you start the buy transaction, you have 7-8 minutes with you to complete the transaction. After the prescribed time limit expires, the buy transaction will fail. You can begin a new buy transaction again with the new price quoted at that moment
- On the bottom strip, click on the ‘Locker’ icon to view your Gold balance. Click on the ‘Transaction’ icon to view all your transactions and download invoices
