What is the advantage and disadvantage of gold?

Gold also has other potential drawbacks to consider. One of the factors that makes gold a good investment is liquidity. Gold can easily be converted to cash whenever you want. Compared to other investments, gold is the only investment with high liquidity.

An initiative of Kredent InfoEdge Pvt. One of the problems with investing in gold is that you have to store the gold somewhere. Now that you know the pros and cons of investing in gold, it's up to you to decide if you still want to buy gold or if you prefer to invest in the stock market or real estate. Gold also suffers most of the time because it is a physical asset.

It's not as portable as bank assets, for example. However, in times of crisis, this lack of portability and sense of permanence is likely to further comfort investors. The main financial advantage of gold is that it tends to be an effective way to provide you with additional protection against economic uncertainty and inflation. Another advantage of investing in gold is that gold not only looks good, but it is also used in many industrial processes.

That said, it's just as important to know the pros and cons of gold before making any decisions. Therefore, in addition to being just a store of value in times of crisis, gold also has many practical advantages and beneficial characteristics and is therefore used in production processes around the world. If you believe some doomsayers, U.S. dollars would soon cease to have all their value, so holding real gold in your hand could be an advantage.