Investment in gold jewellery has always been a clear choice of Indian minds. Gold is considered to be the safest investment and proven in recent downturn as well when whole world plunged to route their money from shares to gold. It is the best time to invest in gold jewellery till the gold prices is floating low.
Gold has been the currency universally and eternally. Since the dawn of civilisation, men have used gold as the measure of wealth. The idea has not changed even today. Even if we see currency notes being used today, those are actually token currency. Let me explain the idea today. Take a Indian note and read at the centre. “I promise to pay the bearer the sum of XXX amount” is written there and is duly signed by the governor of the reserve bank. What does this mean? It means, you can any time approach the reserve bank, the highest banking authority in the country and get your currency note exchanged for real wealth, gold. If you have a 100 rupees note in your pocket, it means you are entitled to have gold worth of 100 rupees from the Indian government via the reserve bank. Another way of thinking this is, if you have a 100 rupees note, gold worth of 100 rupees is kept safe under your name in the reserve bank with the Indian govt.
This is why gold is the best and almost infallible material to invest in. Can you imagine a country without currency or money? Of course no. Thus, there can be no fall in the demand of gold ever as it is the founding stone behind any economy, any finance. If gold price fluctuates, the whole economy shakes. If gold demand and supply fluctuates, again the whole economy shakes. With steady gold reserve, a country can prosper. Why American dollar is so costly? Because they have a much larger gold storage than India.
Gold prices can go up and down of course. But most of the time, it happens internationally. Like now the Gold prices are pretty down. In India, from a high of 33000 per ten grams, the prices came down to 24000 per ten grams and presently has recovered a bit to 25000 per ten grams. This is an excellent time to invest in gold as gold prices always tend to go up. Do you remember how much was the gold price in 2006? It was 8000 per ten grams. In 7 years, the prices quadrupled. Is there any banking option where you can get this return?
This is the perfect time to get some jewellery in your vault as this reduction in price may not last long. Get this before it is too late.