Whether it’s an engagement, wedding or birth of a child, Indians like to celebrate it with gold. The auspicious yellow metal holds immense sentimental value as heritage jewellery pieces are passed down to generations. However, this isn’t it. Gold has also been a fallback during financial emergencies for families. Hence, it’s no surprise that India is second only to China when it comes to buying gold.
However, physical gold comes with its set of challenges, like buying even a few grams is an expensive affair, keeping gold jewellery at home is risky, etc. This is where digital gold comes in, offering all the benefits minus the accompanying stress.
In terms of returns, gold reportedly gave a return of almost 28% in the year 2020 despite the pandemic, whereas Sensex saw a rise of 16 per cent. FD returns stood at nearly 6 per cent. Seen over a longer term, gold has delivered 11.7 per cent annualised CAGR return in the last 12 years, 9.4 per cent in 10 years, 12.3 per cent in the last 5 years and 16.7 per cent in the previous 3 years.