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Sneha Bhatiya

Updated on Jun 5, 2026•others

Is buying gold a wise method of saving?

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5 Answers
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Priya Agrawal
Random Facts Enthusiast
Updated on Jun 5, 2026

Gold is often considered a popular long-term savings and wealth-protection option, especially in countries like India. Many people buy gold because it is seen as a relatively stable asset during inflation, economic uncertainty, or currency weakness. It can also provide liquidity because gold can usually be sold or pledged easily when needed.

However, gold prices can still fluctuate, and physical gold involves making charges, storage concerns, and safety issues. Some investors prefer digital gold, sovereign gold bonds, or gold ETFs instead of jewelry. Financial experts often suggest keeping gold as one part of a diversified portfolio rather than putting all savings into it. Honestly, gold is usually viewed more as a wealth-preservation asset than a fast wealth-creation investment.

Must Read: Is Buying Gold Jewelry a Good Investment?
 
 
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Vasanthi Gopalan
Public Affairs Researcher
Updated on May 29, 2026

For centuries, major proportion of investments were in gold. Rulers and Kings issued gold coins and mudras and their treasury was full of jewels made of gold and gems. Gold investments proved as the solid long term investment. And it will add value to one's portfolio especially in bear market.

Conventional way of buying physical gold is beneficial only for ornaments. Now we have more modern way of gold investments like gold Mutual Funds, ETFs, E-gold, and gold schemes offered by Indian government.
 
• Gold Mutual Funds - Gold Mutual Funds don’t buy gold directly but invests in stocks of companies engaged in gold mines and gold ornaments making firms.
 
• Gold ETFs - Gold ETFs are open ended mutual fund scheme that invests the money in gold bullion.
 
• Gold schemes - Government of India announced 3 schemes for saving gold. Gold Monetisation, Scheme, Gold sovereign scheme, and the Indian Gold coin scheme.
 
Investment in gold is profitable and risk free on following grounds :-
 
• Inflation Hedge - Value of gold rises with rise in inflation. During inflation investment in gold is the best option for investors.
 
• Liquidity - There is always demand for gold. Day or night, inflation or deflation you can sell gold within a short notice.
 
• Valuable asset - Gold will not depreciate in any time. You can have moderate returns in long time. But possessing gold gives a secured feeling.
 
• Risk is minimum - The risk of occurring loss is minimum if you buy E- gold or ETFs. While selling gold ornaments one can face loss due to making charges and other tactics followed by jewelers.
 
Investment in gold is for the people who are nervous to take risk and who have weak kidney and heart. If you are strong and your purpose of investment is making huge profit in the long run then gold investment is not for you. You can better invest in stock market and acquire wealth. Even for ordinary people the investment in gold should have some limitations as the returns from gold will be in singular digit only.
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Prreeti Radhika Taneja
Updated on May 29, 2026

If you ask an economist, she/he would say that investing in gold is a bad idea.

Unlike other financial assets, gold doesn’t grow. It’s unproductive. What you’ve got now will remain the same even after decades. Its value only jumps higher in speculation that the price of other assets might go down. When someone purchases gold, there’s no assurance that it would be a profitable move.

The person simply HOPES that there will be someone out there who would be ready to buy it at a higher price. So, yes, for many people, investing in gold is not really a wise option. Not at least today when there’s just so many assets and avenues where you can put in the same amount and enjoy much higher rewards.

The returns from gold are very (very) poor. However, what you’re asking in question is “saving”. Yes, certainly, if you’re looking to safe-keep the value of your money somewhere, gold is a decent choice. Even better choice than banks. It’s very secure, highly liquid and can deliver marginally more return than an average savings account.

In short, investing in gold is not a good idea; go for the stock market, mutual funds, and real estate. On the other hand, saving in gold is a decent idea; you can go for it!

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Dave Jerry
Answered on May 25, 2020

Yes, of course because Gold tends to maintain its value over time.

Gold is a safe investment during times of economic recession. If you want to purchase physical gold, then purchase gold in the form of bullions, bars, or coins, which is the most preferred form of gold investment. Gold stock investors can get higher returns on their investment because a small increase in the gold prices can lead to significant gains in gold stocks. Gold can be easily converted into cash, which is the main advantage of gold investment. Find gold coins of investment-grade purity, if you want to invest in gold.


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Ajay Patil
Answered on May 20, 2020
As a sparing resource

As a matter of first importance, by purchasing gold you'll be cementing your advantages which is something you ought to consistently focus on. Basically on the grounds that money is good for nothing except if you have something to back it up with while gold is continually going to hold its worth.

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