Jan 10 2019
3 Things that makes gold the best investment!
There is no Indian wedding without gold. Gold is an inseparable part of Indian heritage. Every girl gets gold gifts from her parents from a very small age and hears the same old slogan that it is an investment for their wedding. The gold gifted to the bride by her family is not only seen as auspicious but also secures her for life. Gold is a seen a precious investment commodity which is deemed a safe investment option. Gold prices have gradually increased over the years, making it valuable to the bride in her hour of need.
1. A woman has the right to her gold ornaments even after divorce
In a historic ruling, the Supreme Court declared that a woman has an uninfringeable right to 'streedhan' and can claim it even after her partition from her husband or getting a divorce. The ruling is an important one as it makes it clear that denial of her streedhan is equivalent to domestic abuse, ensuring criminal prosecution for anyone who pushes for it. According to Hindu Law, streedhan refers to valuables and goods, both movable and immovable, a woman receives, prior to and after marriage. The wealth is hers alone to dispense – whether she wanted to invest for the household or save for herself or spend it on her family – it was up to her to decide.
2. GST has not made much difference in the price of gold
A 3% GST is liable on gold from 1St July 2017 onwards. However, the customs duty will continue to be 10%. Also, GST of 5% will be charged on the making charges of gold. To know exactly how this impacts the price of gold, read Simplifying gold purchase: making and wastage charges. With GST, consumers now face effective tax rates of about 13.5%-14% (including the customs duty, GST on the making charges and gold jewellery), which was earlier 12.4% So, it is just a difference of 1.33%.
3. Gold is like an insurance
Insurance is to eliminate risk when things go on a downward spiral like an accident, illness, unexpected death, etc and gold is one. Gold is an asset in a financial portfolio like stocks, bonds, and various other investments. If one of your investments drops, another may go up and protect you from suffering a major decline in your holdings. Gold protects investments during a time of market volatility and fluctuations. With the cyclical nature of equities, expect markets to crash and owning physical gold will be well-rewarded. The actions of the Reserve Bank of India (RBI) have kept inflation in check, but gold (even then) retained its true value, unlike true necessities like food, where prices kept on creeping higher. In times of inflation, the dollars in your savings account buy fewer goods and services, but gold maintains their value. Gold is traded in US Dollars. When the dollar weakens, it helps push-up the price of gold.