The price of gold has an upward movement, and inspite of this fact gold is still in demand. This fact makes gold to be a good investment option because once you buy it you expect that the cost will rise. A rise in the price means that you profit from the investment as the value of Gold will keep on increasing. Moreover, gold is God’s money as it was created by God. Gold is naturally occurring in the earth, and it’s usually mined by man to bring it out from the earth. It’s a valuable metal which is used as a medium of exchange for value.
Gold is used as a substitute for the fiat currency because you can use it to pay for goods and services of equal cost according to the present market prices. This precious metal makes a good substitute for the fiat currency because of the ability of its price to move upward which means that you profit from gold. The fiat currency is quite unstable interms of the value that it offers. There’s a term that is called the time value of money which means that one shilling today is worth more than the same shilling tomorrow.
This means that the amount of money that you own today will buy less of the same goods tomorrow. It happens due to inflation in the market where the prices of goods and services are increasing as people’s incomes are held constant. This means that your purchasing power will be lesser tomorrow, and the money that you have saved will be worth lesser value in the future. But, when you buy gold which is like owning a commodity other than storing fiat money, the market rate of gold will increase over time, and tomorrow you will be able to buy more goods and services.
It means that tomorrow you will be rich, and this fact makes gold to be a precious asset to have because it’s wise to store something that is has increasing price. Gold is a common asset in Bengaluru and also in India, and the prices of Gold in Bengaluru are decided by the prevailing prices in the international markets. The factors that affect the price of gold include its demand level, and the US Dollar exchange rate in comparison to the Indian currency.
In Bengaluru, gold is mostly bought in the form of ornaments and jewels. Additionally, gold is used as an investment where Indians are known to use gold to save assets, rather than saving the fiat currency in the banks. Gold is categorized as either pure gold, or standard gold and pure gold fetches a higher market rate in the market than the standard gold.