Gold often retains or increases its value during inflationary periods, protecting purchasing power as fiat currencies depreciate.
In times of geopolitical instability or economic crisis, gold tends to rise in value, providing security when markets falter.
As a non-correlated asset, gold often moves independently of stocks and bonds, offering diversification to balance risk in an investment portfolio.
Gold ETFs : For those who prefer to invest in gold without dealing with physical storage, Gold ETFs provide an easy-to-access alternative. These funds track the price of gold and can be bought and sold like stocks, making them highly liquid and accessible.
Gold Mutual Funds : A Gold Fund is a type of mutual fund that mainly invests in Gold Exchange Traded Funds (ETFs) or stocks of companies involved in gold mining, refining, or marketing. In India, these funds use a fund of funds structure, with their underlying assets being physical gold. Consequently, the value of Gold Fund investments fluctuates with the price changes of physical gold.