Gold was the first form of currency and is now used as a store of wealth. Gold has emotional, cultural and financial value. Different people across the globe buy gold for different reasons. As per the World Gold Council, the composition of 10-year average annual net demand in 2020 was as under:
One of the reasons to buy physical gold is to have a backup if the world goes crazy. It is a bit like bitcoin, but bitcoin is not physically traceable, whereas gold is. Gold per se does not give good returns, whether it is through ETFs or the RBI. The reason to invest in gold is to have gold with us as an emergency backup. To me non-physical gold makes no sense.
One of the reasons to buy physical gold is to have a backup if the world goes crazy. It is a bit like bitcoin, but bitcoin is not physically traceable, whereas gold is. Gold per se does not give good returns, whether it is through ETFs or the RBI. The reason to invest in gold is to have gold with us as an emergency backup. To me non-physical gold makes no sense.
Thank you for sharing, it will be very helpful if you please share little more information on EGR.