Why to invest in GOLD ?

Gold, unlike shares or fixed deposits or bonds, is an asset of tangible nature. Now, it has become tradeable through exchanges like any other commodity. Otherwise, there had not been much enthusiasm among investors to grab gold.

Tangible assets always give distinct quality to your investment which are more or less stable in nature. But actually, if you go for further buying in open market, you will see the premium and if you go to sell, a discount. So, once you invest, it will be useful in showing your asset value and it is rather more illiquid ( I am talking about the open market gold and not exchange traded one).

Gold is also used as a status symbol. Hence the 'blind' investment is seen here in the rural India.

I feel that Gold will help to diversify the portfolio.

As the price of gold depends on demand and supply conditions in the world markets. The supply of gold depends on mining conditions in major gold-producing countries and also on the selling decisions of one who owns huge stocks of gold i.e the central banks.

The demand for gold is partly determined by its use in various industries like electronics, jewelery etc...

Therefore, Gold tends to move differently from other financial assets and it may hold its value even when other assets are performing poorly. Thus, an investment portfolio may earn smoother returns if some of it is invested in gold.

So, don't you think investing in gold is better option ???

During severe crisis like the one going on, due to this the economy naturally suffered along with most regular investment products like stocks and mutual funds.

The value of the currency have also fallen and to ensure panic, the price of gold would probably increase sharply as people flee to the age-old store of value.