Since ancient times, gold has been the best option for investment. Don’t believe me? Ask your parents and you’ll get the same response. Buying Gold Coins is so popular as an investment in India that it’s visible in the demand numbers shown below –
Import value of gold in India FY 2011-2023
Published by Statista Research Department, Dec 22, 2023
India imported more than 2.8 trillion Indian rupees worth of gold in fiscal year 2023. This represented a decrease of roughly 18 percent compared to the previous year. That same year, gold exports from the South Asian country were valued at 77 million U.S. dollars.
India’s place in the global gold industry
In 2022, India ranked as the fifth-largest gold importing country worldwide based on value, having amounted to nearly 37 billion U.S. dollars, and accounting for over eight percent of global gold imports. In terms of output, India produced about 780 kilograms of gold in the financial year 2023, while the global mine production of gold amounted to 3,100 metric tons in 2022. Accordingly, India’s relatively low domestic gold output means that the country needs to import significant quantities to meet demand.
The value of the Indian gold market exceeds several other major economic sectors and yes the value is due to Gold Coins and Bars investment, but there are other factors like around 20% of the entire demand is seen in the Diwali season showcasing the gold price is driven hugely by our cultural significance in India.
Why invest in precious metals like gold coins
When you talk about investing, you talk about the future and when you talk about the future, you should know that history repeats itself!
The answer lies in our cultural roots and If you study any era in history then you’ll find one thing very common in all of them, guess what? Yes, it’s gold & you probably guessed it right, but why?
It is not just the appeal, gold was the currency globally and there’s a science behind it, and let us prove it. Have you seen iron rusted? Yes but have you seen Gold rusted? Rarely right?
This is exactly why our ancestors preferred gold as the store of value: in those times it was a barter system. You need rice give me a cow or you need a cow then give me rice, and how much do you think things like rice and a cow could survive? And how much have you seen gold survive? Thousands if not lakhs of years!
This is the same psychology behind investing in precious metals like gold and silver which are long-lasting and accepted globally in any circumstance. That being said, let’s move to choosing the best gold coins for investing in the next section.
Choosing Which are the best gold coins to buy for Investing
Investing in gold coins in this modern era gets very tricky sometimes as there are so many sellers with so many options in shapes, sizes and purity.
Primarily choosing the right place to buy gold coins is more important than any other factors because remember winning is not losing in the first place. So, choose the right retailer like Gujarat Gold Center which has been in the industry for quite a long time for more than two decades and is trusted in India.
The purity should be of course the highest of all 999 pure but what about the quantity? Let’s discuss in the next section!
The smartest precious metal investment strategy
There’s no one-size-fits-all- to answer the question because it varies from person to person.
For example, there are two friends named John who is working as a writer and Shawn who has a shop named Shawn Electronics. When we look at the monthly earnings of both, Shawn earns 1 Lakh per month and has 30,000 in monthly expenses whereas John earns 50 Thousand per month and also has the same 30,000 in monthly expenses.
Now if you look at the disposable income of both parties then John has 20,000 rupees at the end of the month whereas Shawn has 70,000. If you were to decide how much gold John should buy then it would be one coin per month and Shwanl’s investment strategy would be a minimum of 2-3 coins per month right?
We hope you got the idea of how much to buy, according to salary and if you want exactly a rule according to your salary to manage your finances then it is mentioned below –
Concluding What’s the right price for investing in Gold Coins & time to sell your gold coins?
There are tons of factors affecting the price of gold in India especially, the Festive/Diwali Season and Marriage Season are two of the major things that you should consider before making any purchase.
Slightly before these periods or slightly after these periods is considered as a smarter entry point but the question then comes to our mind is when to sell.
Well, it’s like you should never sell your metal at any cost and hold it as far as possible no matter whatever the condition. But why? Because Compounding is the real deal and you should use it to your favor.
For example, you waited for the right price and sold it at a good amount to make a nice profit. But history shows that gold price has always risen throughout history so if you’ve just ended up wasting an hour daily in finding the right price then aren’t your 30 hours wasted plus the time you went to the store to sell it?
Let’s suppose your hourly income is Rs.1,500 (monthly income divided by hours you worked the entire month) and somebody stole 500 bucks from you, now you can not spend even one hour to find that guy and instead focus on working just an hour extra will give you 1,500 Rupees.
The above scenario shows the value of your time which also means if you go to a store to buy gold coins and waste an hour then you waste your 1,500 Rupees which is the reason why buying gold online makes complete sense for you.
That being said, thank you so much for spending your valuable time reading through this entire blog here. We hope you found this blog valuable and it will help you in deciding the gold coins investment path in the future journey, Happy Investing!
