Global store of value
Gold
What is it?
Gold is a precious metal used as a hedge against inflation, currency risk, and crises.
How does it work?
You can buy physical gold, ETFs, digital gold, or Sovereign Gold Bonds (SGBs).
Benefits
- Inflation hedge
- Portfolio diversifier
- Crisis-time performance
Risks
- No income yield
- Storage costs (physical)
- Price volatility
Important terms
- SGB
- Sovereign Gold Bond — government-issued gold-linked bond paying 2.5%.
- Gold ETF
- Fund holding gold on your behalf; trades like a stock.
Common mistakes
- • Buying jewellery for investment
- • Overallocating (>15%)
Beginner tips
- • Prefer SGBs or ETFs
- • 5–10% allocation is common
- • Think decades, not months
Educational only. This page explains how gold work. It is not a recommendation to buy, sell, or hold any specific asset.