Gold loan interest rates March 2024: Check full list of banks' latest gold loan interest rates

Gold prices slipped on March 6, 2024 amid profit booking after hitting their lifetime high in the previous session in the international and domestic markets.

Here is a look at the five right reasons to invest in gold. Before you read any further, do keep in that your investment in gold (in all its forms) should not exceed 5-10% of your total portfolio.

When inflation increases, the value of currency decreases. And in the long term, almost all major currencies in the world have depreciated in value relative to gold. This is why people hold money in the form of gold.

Gold is one of the few assets that is tangible, and this is why it creates a perception of safety among investors. Buying gold is easier compared to purchasing other tangible assets like real estate.

Some economists believe that gold is a highly effective portfolio diversifier due to its low to negative correlation with all other major asset classes. Still, as a rule, gold shows no statistically significant correlation with mainstream asset classes.

Investments in gold can be liquidated much faster than other physical assets like real estate. There is no lock-in period. The redemption amount will depend on the purity of the gold, denomination, market price etc. One can we can take loan against gold in times of need.

Gold usually does well during geopolitical turmoil. Crises such as wars, which have a negative impact on prices of most asset classes, have a positive impact on gold prices since the demand for gold goes up as a safe haven for parking funds.