These two investment instruments are often recommended for novice investors, but gold is often used as a hedge against inflation, and in some countries gold is also used as the monetary standard of the financial system. Fixed rate bonds will provide fixed returns that are distributed every 6 months, but the bond spread is smaller compared to gold. Gold is in physical form so the risk of theft or loss is higher. The liquidity of bonds is lower compared to gold, interest income (coupons) from bonds will be deducted from income tax, while capital gains from gold are not deducted from tax.
Gold Investment vs Bonds: Which Do You Prefer?
- Thread starter Suba
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The main risk of investing in gold is that the risk of robbery or theft is very high. So a person who is facing the problem of criminal trespassing or burglaries in their home, will find it risky to invest in gold, since the robbers usually prefer to take the gold.
I invested in both. I bought physical gold coins and put them in the safety deposit box of my bank. Gold price has increased quite a lot recently. I also bought green bonds issued by the government. They pay an interest of 5.5% which is not bad, I think.
Honestly if i am given an option to choose right now, my choice would be gold. My answer is not cause i have a professional ideal or knowledge about it, it is simply because i do not know anything about the other options.
India has a tradition of buying some precious metal especially gold on two days.. one on Akshay tritiya and other on Dhanteras, two days before Diwali. I practice buying gold coin or some ornament with goka or gold and diamond on Dhanteras. I have been doing it for years now. Now, we are planning to explore Gold bond too along with this tradition. We are yet to start with this.
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- #9
T
That's very good, no one knows when we can live, meaning you have also passed on or informed how to access your crypto wallet and how to sell on a crypto exchange.
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- #11
That's great, you invested in both, bonds and gold have little risk compared to stocks and crypto. The value of gold and bonds is influenced by external factors, the value of bonds is greatly influenced by interest rates while gold is influenced by inflation, supply and demand. If the country is in a recession, gold will be more profitable than bonds.
Both gold and bonds have their merits and drawbacks. Gold is often seen as a hedge against inflation and a store of value, making it attractive for some investors. On the other hand, fixed-rate bonds offer regular, predictable returns but with a smaller spread compared to gold. It's essential to consider factors like security and liquidity. Gold, being a physical asset, carries a higher risk of theft or loss. Bonds, while less liquid, offer some protection in this regard. For a more in-depth analysis and guidance, you can check out https://altinvestor.net/. They provide valuable insights into various investment options to help you make an informed decision.
If for profit, then clearly shares look much more attractive, but to protect your finances from inflation, then it is definitely gold, although it is worth understanding that gold must be bought on the stock exchanges and stored in a digital wallet if there is such an opportunity, because otherwise you need to secure it at home from thieves
Its very true it's required right knowledge to excel for me I don't know anything about gold investment but I had little knowledge about bonds so if I want to venture into that investment I will ask for help