Gold: Best investment or a bursting bubble? - Group Discussion

Gold: Best investment or a bursting bubble?

Gold- A metal which all of us love. Even though we are fond of gold, not all of us can afford gold. Gold is apparently the most convenient type of investment. Even though the price of gold is always rising, there is a constant fear that someday this bubble might burst.

Best Investment:

- From the past many years, the value of gold has only increased.

- In case of need, we can sell gold anywhere, anytime. The value that we get is always the value of the metal on that day.

- There are many schemes available for Gold that makes it an ideal investment. We can buy gold installments, take loans against it etc.

- It is the simplest form of investment. You don’t need any paper work, duties etc. You can buy and sell gold in a jiffy.

- Even if you don’t get the same price while selling as that of buying, you can easily use gold elsewhere.

Bursting bubble:

- Remember, gold cannot be considered as an asset in the true sense as it doesn’t necessarily create value and income over time.

- The gold bubble has been building up for a long time now. The prices have been increasing and investors are sensing that it will burst someday.

- Considering the instability of the economy worldwide, this bubble can burst anytime.

- The gold prices are more investor driven as compared to any specific economy attribute.

We all invest with the hopes of gaining profit when we intend to sell the bought asset. Even though Gold could be considered as a valuable asset, many of us have this notion that we have to invest a lot to get a small measure of gold. Whether an investment is best or not totally depends on our resources. If we have ample of money, substantial amount of investment in gold could be considered practical.