Can i buy gold bullion online

Can i buy gold bullion online

Yesterday one of my friends bought gold on the occasion of Diwali and she was saying that she contributed to GDP by buying gold. that triggered me to write this post.

” Is buying nuggets really help the economy to grow? common sense says ‘yes’ because you spend a lot of money in buying gold and this is one type of consumption which will add to GDP. but this notion is totally wrong. I’ll explain to you why? where to invest in gold mining online  where to invest in gold mining online Buy gold nuggets online Buy gold nuggets online

On the global front, India is the largest consumer of gold, India accounts for more than 30 percent of the global gold market. However, the domestic production of gold in India is minimal. India meets the high demand of gold from its domestic consumers by importing it. gold & precious metals contribute to 13.5% of India’s imports, which is the second highest import of India( first being crude oil with 25%).gold is a major contributor to the Trade deficit.Can i buy gold bullion online Gold bars and nuggets online Gold bars and nuggets online

Most of the gold bought by us Indians is used for consumption purpose in the form of jewelry. Even from the investment perspective, a majority of the Indians still prefer the traditional way of holding it in the physical form.Gold ETFs, which were first introduced in India in 2007, witnessed slow growth in the initial years. Over the past couple of years, investments in gold ETFs gained momentum.CAN I BUY GOLD BULLION ONLINE

However, as per the statistics of bars Council, jewelry accounts for nearly 75 percent of the gold demand in India, Investments in the physical form of gold are either stored in bank lockers or get exchanged for making jewelry.which will not give any return.Imagine the same amount being invested in the capital markets. It allows the companies to raise capital in the form of debt or equity and expand their business. It can make a huge difference to the productive capacity of the economy.Can i buy gold bullion online

Another way of looking at it is, Instead of importing gold, if we import capital good heavy machinery, it will support industrial production. The goods produced by using that machinery can be exported and the revenues can be used to fund the current account deficit.Can i buy gold bullion online Where to buy gold and pure diamond Where to buy gold and pure diamond

The problem is, the demand for gold is price independent. people feel gold is a status symbol, so they don’t care about price, this thinking is more prevalent in rural areas. we are literate but financially illiterate.the responsibility lies on all of us to change this scenario by educating people.