disadvantages of gold ?
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Answer:
The disadvantages of investing in gold
1. Gold is not a passive investment
Gold is not a passive investment like stocks and bonds. Passive investments earn regular income in the form of interest and dividends. But, the only income you can get from gold is when it is sold in the open market.
2. Gold is difficult to store
If you love holding physical gold, then storage is the biggest issue. Gold has to be stored and guarded carefully, as it is of high value. If you place your gold coins and jewellery in a bank locker, you must pay locker maintenance charges each year.
3. Price correction can lead to losses
Sometimes the value of gold rises say when stock markets crash and investors rush to invest in gold at high prices. Once the panic dies down, the price of gold corrects itself. This might lead to losses for the investors.