Long-term store of value – For centuries, gold has been the best store of value for the long-term(store of value is an asset that maintains its value without depreciating). The fact that it can play the role of money adds to its superiority and its outperformance of the currency value make it attractive.

It will always have value – Currency is a ‘promise to pay’. Gold, on the other hand, requires no such promise. It is the only financial asset that is not someone else’s liability at the same time. In its 3000+ year history, gold prices have never dropped to zero. Hence, it will always have value and stand strong even if the market collapses.

Inflation hedge – When inflation rates rise, the value of currency drops. However, over the last five years, despite the rise in inflation rates, gold prices have doubled. In India, where inflation rates tend to exceed interest rates, investing in gold is a hedge against inflation.

Liquidity – One of the most important features of gold investment is liquidity. Gold can be bought and sold in a very short time.

No specialized knowledge needed – When you buy stocks or invest in mutual funds, you need some knowledge of the market and economy to make the right decision. With gold, no such knowledge is needed. It is simple and straightforward making it easy to invest in for all kinds of investors.

Helps diversify your investment portfolio – As an asset class, gold has a low/negative correlation with other asset classes. Hence, it is helpful in diversifying or hedging your investment portfolio against market volatility.