Gold Market Vs Share Market: Where to invest for beginners?

Gone are those days when you only have a handful of investment options to aggravate your wealth. The evolution of technology has given rise to new investment opportunities, creating the urge and demand to invest. There are several types of markets where you can invest your savings, but the most popular ones among investors are the gold market and the share market. Now, which is an ideal investment choice among the two for beginners?

There are numerous factors we have to consider before answering this question. Some of them include investor type, amount of risk you are ready to take, investment amount, expected returns, etc. Here, we’ll list the differences between the gold market and the share market that would help you to take the final investment call.

Gold Market Vs Share Market:

Whether it’s a gold market or a share market, investing in a lump sum is not a good idea for rookie investors. The most popular approach to initiate your investment journey is through a systematic investment plan (SIPs). Both gold and share markets have their ebbs and flows. So, what’s the best investment option for a beginner?

1. Though the stock market is going down the tubes or not performing as expected, you can still cash in good profits by using gold as a hedge.
2. The share market does not always give you the desired returns, but when the market is doing extremely well, the gains would be in whopping numbers.
3. The gold rates do not depend on the market metamorphosis. But the share market depends on the ups and downs in the market. The micro and macro factors affect the share value of any company irrespective of its size.
4. Gold secures you from market turmoil, alleviating you from all that cacophony and rumours in the market.
5. If there’s any unprecedented situation in the economy, case-in-point, the fatal pandemic, the seething social distress, this shimmering asset value touches the roof.
6. Gold doesn't have the compounding effect and does not offer regular dividends and income like equities in the share market.
7. Investors have a lot of scopes to multiply their wealth by investing in the share market but it’s otherwise in the case of gold. Balance is what's needed in this line-up, especially when investing in volatile markets. Gold can go along with the share market, as the former acts as armour when the latter hits rock bottom.

Long story short, every rookie investor must know the basics of the market they are willing or planning to splurge their savings into. A lack of know-how in such areas can lead to an investment fiasco. So, whether it's the gold market or the share market if you get your basics right and stay abreast with the happenings related to it, there’s a higher chance of attaining fruitful results.

Disclaimer: Investments are subject to market risks. And hence, it is always advisable to read all scheme related documents carefully along with proper knowledge on the same before investing.