Gold investing is a lucrative option for many. In fact, oftentimes you will find yourself checking today’s gold rate in Gulbarga or for any other city. While a lot has been said about the benefits of investing in gold you may not know that there are some risks in the process as well. So here are some of the reasons why investing in gold might not be the best option for you:
No guaranteed returns
Investing in gold could be called a low-risk investment option but when it comes to returns, they are never guaranteed. The actual value of your investment depends on the purity and weight of your gold, which means that you may get very less returns from your investment. In addition, if you wish to buy some jewellery then you must keep in mind that the making charges will eat into your profits as well. The price of gold is dependent on a lot of factors and you can never predict what will happen in the coming years. So, for example, if you want to invest in gold just because there is a rise in its prices then you need to understand that there is no guarantee that these prices will continue to remain high. With gold, your returns can fall off to be negative as well.
Non-functional asset
Jewellery is always seen as an investment for women but it does not generate any real value. Apart from the making cost, there are no other costs involved in jewellery and you cannot expect any good returns on it. In fact, if you want to sell your old jewellery, you will get a lesser amount than what you bought it for.
Need to store gold
Gold investments can be costly as compared to other forms of investments because gold needs physical storage space and maintenance costs too if you keep them at home.
Expensive investment
Gold requires a lot of money to get started in the investment and many people cannot afford to invest a lot of money in gold. You can check it for yourself. All you need to do is set the gold rate today in Nellore or Agra and keep a track of the price for a week or a month. You will notice that no matter when you decide to start investing in gold it is always going to be an expensive endeavour.
No guarantees
Although it does provide returns the returns are not guaranteed and at times it has also given negative returns making your investment amount less than what you have invested initially.
Returns take time
This investment takes a lot of time before you start earning any decent amount from it as it takes time for its value to increase and you may have to wait for years before you can generate any significant amount from the investment. After taking all the effort and time to invest in gold, when you don’t get the desired returns it is nothing but a loss.
Difficult to liquidate
Gold investments cannot be liquidated easily as the value of gold keeps changing every day and changes according to international market trends, so one needs to watch carefully when they want to sell their gold so that they get maximum returns.
