Paper money has replaced gold. As gold has been progressively devalued, it has become increasingly difficult to obtain this precious metal at an affordable price and keep it safe, as well as desirable. Even though people spend a major chunk of their day looking up metrics like gold price today in UP or Ahmedabad they seldom make the purchase. So why aren’t people buying gold even though they might be interested? Let’s take a deep look into understanding why gold is dying as an investment and why there may still be hope for this legendary precious metal:
Why gold is not futuristic?
1. Does not produce anything
Gold is a dead investment because it does not produce anything. It can’t be used as currency, and it can’t be used as a store of value. The only thing that gold does, other than being an investment, provides a hedge against inflation, which has been going on for hundreds of years now.
2. Other more reliable forms of investment
Gold isn’t the only form of investment that dealers recommend, but it’s the most popular one. Why? Because it’s easy to sell and easy to buy, so there are no problems associated with selling it or buying it; they just go through the same process they always do. Gold also has a low correlation with other investments, meaning that when one goes up or down, the other ones don’t necessarily follow suit (though some do). If you want to diversify your portfolio and invest in something besides gold, then look into stocks or bonds; but even if you don’t want to diversify your portfolio (which would be stupid), then consider investing in something else like real estate or IPOs (initial public offerings)
You can use your computer and electricity to mine bitcoins, which are more reliable than buying gold coins or bars. You could also invest in things like bitcoin futures, which are very volatile and risky but very profitable if you know what you’re doing.
Why gold still has some value as an investment?
1. Hedge against inflation
Gold has historically been used as a hedge against inflation, which can occur when the supply of money increases and its value decreases. This is because gold cannot be created through printing or inflating, no matter how much central banks try to create new money. You can confirm this yourself. All you need to do is track the gold rate in Varanasi or wherever you live during inflationary times and see if the price is badly affected or not.
2. Use in several industries like aerospace and healthcare
Gold is used in numerous industries for jewellery, electronics, dental care and more. It’s even been used in space travel! Gold can be used to make electronics that are more durable than traditional materials like copper or plastic; however, gold is not conductive so it won’t work well with electronics requiring a thin wire connection like cell phones or computers. However, gold is great for making medical devices that require less maintenance than other metals; such as pacemakers, hearing aids and dental crowns!