Indian households consider gold as an investment. Here are some myths about purchasing gold, busted.
1. Buying jewellery as investment: When you buy gold jewellery, you are actually losing money in the form of making charges. Also, if you have bought stone-studded jewellery, you will end up losing money on it completely.
2. Considering gold for higher returns: You should know that gold is not an investment instrument. It is actually a hedge against inflation. According to financial planners, gold is a hedge against inflation and hence, you should not have more than 5-10% exposure in gold
3. Buying gold in physical form: Mostly people think having a physical asset is a good thing and so tend to buy gold in physical form. A better way to invest in gold is through paper form. In fact, if you buy gold through sovereign gold bonds, besides the change in price, you will get an additional 2.5% fixed returns annually.