Why now is a good time to invest in gold?

Global uncertainties and inflationary pressures continue to affect economies worldwide, and Bangladesh is no exception. In such uncertain times, gold's appeal grows stronger, as it has long been valued as a safe-haven asset.

With gold prices reaching record highs, many investors in Bangladesh are viewing this precious metal as a reliable asset to safeguard wealth. Here's why now might be the ideal time for Bangladeshis to consider investing in gold.

HEDGE AGAINST INFLATION: Rising inflation is eating up purchasing power in Bangladesh as the costs of essential goods and services continue to rise. Gold has historically served as a strong hedge against inflation, as it tends to retain or even increase in value when the purchasing power of a currency declines.

CURRENCY DEPRECIATION: The Bangladeshi Taka has experienced depreciation, like many other currencies, against stronger foreign currencies, particularly the US dollar. Gold provides a hedge against currency depreciation, as its value is internationally recognised and less dependent on the strength of any single currency.

INCREASING ACCESSIBILITY THROUGH DIGITAL PLATFORMS: With advancements in technology and digital financial services, investing in gold has become more accessible in Bangladesh. Micro gold investment platforms, which allow small-ticket investments, have gained popularity worldwide. Platforms such as Jar, Safe Gold, PayTM Gold in India, and Rush Gold in Australia have made gold more accessible to the masses.

In Bangladesh, the Gold Kinen app offers a similar proposition to its users. As the first hallmarked and certified 22-carat gold purchasing app, it provides users with affordable, secure access to gold through payment methods such as mobile wallets and bank cards. Users can start buying from as low as Tk. 500 at official market prices and take physical delivery starting from 1g in the form of gold bars or coins. Additionally, users can sell their gold at any time and redeem cash to their mobile wallets or bank accounts.

GLOBAL ECONOMIC UNCERTAINTY: The international economy is facing significant challenges, from supply chain disruptions to geopolitical tensions. These factors increase volatility in the stock market and other investment options, making traditional investments riskier. Gold, on the other hand, is considered a "safe haven" asset that tends to retain its value when other assets are underperforming.

DIVERSIFICATION OF INVESTMENT PORTFOLIO: For Bangladeshi investors, who may have limited options to diversify their investment in the local market, gold provides an effective way. Adding gold to an investment portfolio can reduce risk, as its performance is typically uncorrelated with stocks or real estate.

CULTURAL VALUE & FINANCIAL SECURITY: Gold holds significant cultural value in Bangladesh, symbolising wealth and security. It is often preferred as a form of saving and is passed down through generations as an asset. Investing in gold today can provide financial security for the future, supporting goals such as education, family, and retirement planning.

Investing in gold is a strategic move for Bangladeshis looking to secure their wealth against inflation, currency depreciation, and economic uncertainty. With accessible digital options and strong historical performance, gold continues to be a stable, resilient asset. Whether for financial security or portfolio diversification, gold remains a valuable investment choice in Bangladesh.

The writer is a communications professional.

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