There are many myths related to gold all over the internet, and that is why we are here to fact-check the top 7 most common myths about investing in gold.
We will explore the top 7 gold myths and provide you with the facts that will save you from falling into misinformation about gold investment.
Value of Gold always Increases over Time
The value of gold does not always increase as we all think because if one invests when the gold is at the top and sells when the price is at the bottom, then the investor will incur a loss, which again proves that gold can be a risky investment for some investors.
As per OutlookIndia report, Since 2000, gold has given negative returns in the years 2013, 2015, and 2021.
Gold is a Completly risk-free Investment
In investment, gold is considered as the hedge against their investment. Still, sometimes, it can affect your investment because the factors like economic conditions, geopolitical events, and market sentiment.
In an interview on CNBC, two traders warn that gold is slowly losing its status as a safe investment and hedge against your investment.
Gold is the only best investment
No, gold is not only the best investment because many stocks have given more return than gold.
Stocks like Apple, Tesla, and Amazon have given more returns than the gold investment.
Gold Investment as a Passive Income
Gold does not provide you the passive income as it does not provide you dividends or interest on a regular basis. Still, stocks can provide you the options like dividends, which can be a passive income.
Investing in Gold Is Complicate
No, Investing is not a complicated process since investing in gold is easy now a days because of modern technology deals and brokers use.
Investing in gold was complicated in the olden days as there was no technology. Still, now it takes a few minutes to make good investment decisions.
Investing in Gold Is Complicate
No. It is not necessary that if the stocks are bullish, then the gold will be bearish Because investor sentiments play a major role in moving the price.
You Need to Own Physical Gold to Invest in Gold
Physical gold is also a good investment, but you do not need to own physical gold to make any gold investment since digital gold is available, which is safe and regulated by the government.
Digital gold, such as gold mutual funds, Gold ETFs, and mining stocks, can be a good option to consider while investing.