Table of Contents
Discover how digital gold is a hedge against inflation, preserving wealth and protecting your savings during economic uncertainty.
Due to its high liquidity, gold has been a popular investment asset for centuries. Aside from its cultural significance, gold has also served as a strong investment tool in India.
Gold is a symbol of wealth and security and is a reliable asset for many investors during an economic crisis.
Inflation is a subject of concern in a country like India, and it hampers the country's overall economic stability.
What Makes Gold A Secured Hedge?
Gold is 100% a secured hedge against inflation. During periods of economic or political uncertainties, gold has always emerged strong against other investment assets.
It is one of the most reliable investment options with strong liquidity potential. Investors can choose from multiple gold investment options, such as physical gold, digital gold, mining company stocks, gold mutual funds, and more.
Investing in gold also helps investors diversify their portfolios, which further helps them manage risk.
Gold Hedging Explained
Gold hedging is a failproof method of using physical gold, digital gold, and other gold derivatives to manage risk and protect against the devaluation of other assets, such as stocks.
This helps investors protect themselves against potential inflation or unforeseen dips in other assets.
Gold has been used as a hedging tool against inflation for years, as this precious metal guarantees stability during global economic crises.
Should You Invest in Gold During Inflation?
Investing money in gold helps you diversify your portfolio and manage financial risks. It is considered a safe haven within the financial market due to its stability, liquidity, and rarity.
You can easily invest in gold online through platforms like Jar, which offers digital gold for as low as ₹10. It is backed by SafeGold and is supported by all major UPI apps, such as GPay, Paytm, and PhonePe.
Gold is a robust investment asset that has endured and experienced a significant rise in value over time.
Benefits of Investing In Digital Gold
Historically, gold has had a very impressive track record against the rupee's performance.
For instance, during the COVID pandemic, the country was hit by inflation, but gold prices continued to grow.
Let’s discuss the benefits of investing in digital gold.
Highly Liquidity
Digital gold is highly liquid and can easily be sold or converted to physical gold instantly. Various digital gold platforms offer quick and easy methods to convert your invested amount into physical gold or cash.
Apps like Jar offer real-time gold rates to help investors keep track of their investment growth. You can easily convert your investment into gold jewellery, a gold coin, or withdraw in your bank account.
Flexible Investment Options
Digital gold is much more affordable than physical gold, as it can be bought for Re. 1. Investors can start saving in digital gold daily, weekly, or monthly with a fixed SIP amount through Jar.
Anyone can invest in digital gold and adjust their investment amount according to their financial situation.
Portfolio Diversification
Gold is a reliable asset to add to your investment portfolio to manage stock market risks. While shares and other stock assets fluctuate according to global financial patterns, gold tends to stabilise during financial crises.
Investing in gold online will allow you to protect your financial portfolio when there is a global economic crash. Gold acts as a hedge against inflation during economic turmoil.
Safe Haven
Global and geopolitical uncertainties tend to negatively impact the financial markets. On the other hand, investors turn to gold to invest in a safe asset.
This demand increases the price of gold, and hence the precious yellow metal acts as a safe haven in times of global turmoil.
