India is the second largest market for gold, after China. Indians are passionate about gold. More than passion, buying gold has a religious significance to it. Unlike other countries, gold holds a sacred place in their hearts. It signifies prosperity, festivals and status. Indians and Hindu families buy gold during various festive occasions and family functions like weddings. Diwali, the most colorful festival of India is one of the most joyous occasions to invest in gold for Indians.
First day of Diwali, known as Dhanteras is celebrated by worshipping money and wealth including gold jewelry. A huge rise in gold prices is observed during this occasion naturally due to the high demand for gold. Apart from celebrations, gold investment is a booming concept in India. Indians buy gold coins, jewelry, bullions and gold equities to invest money for financial crises. People new to gold sector and investments in general worry about the fluctuating gold prices.
Fluctuating gold rates: Does buying gold makes sense?
There are a lot of reasons why gold investments make perfect sense. Gold is one of the most precious metals, very high in demand across the globe. This universal demand for gold is the major reason behind its high rates. Gold trading is on the rise during Diwali and such auspicious occasions. Apart from gold jewelry, buy gold coins, bullions and such physical forms of gold. A lot of investors invest in gold in the form of equities, stocks and shares. Investment in gold mines is the biggest and most lucrative investment for higher profit. Following are a few reasons why buying gold makes sense:
· Gold is a popular metal with the most indestructible and malleable chemical properties. There is an unceasing demand for gold in world market.
· Gold is easy to transport because of its, exclusive, expensive and uniform universal standards. Online gold trading is a raging business in India for this very reason.
· Global financial trends shown that although fluctuating, gold has maintained its value despite numerous apparent reasons including inflation, weak currency and low interest rates.
· People prefer buying gold when the economic crisis darkens. High gold rate surprisingly results into high demand for gold. You can easily gain high profits by selling your gold stocks then.
· Buying gold provides flexible long-term and short-term investment instrument. It improves your portfolio and gives the much wanted financial stability.
· Collapsed world economy is a major factor affecting investments, except for gold sector. Down economy increases gold prices hence people invest in gold for stability and financial security.
A lot of budding investors believe in letting the festive seasons like Diwali go in the anticipation of fall in the gold rates. Buying gold during festive season may seem unaffordable, it definitely reaps better profits when you start gold trading. Various ways to buy gold this Dhanteras include gold coins, bullions, jewelry, shares and stocks in gold mines, gold ETFs and equities.
Rutuja write on behalf of Religare Online whichis India’s leading provider of financial and online trading services. They offer a wide array of services such as gold investment, derivatives, mutual funds, commodity trading & more. Check out live gold price and special offers on gold investment plans for this Diwali.