Advantages Disadvantages of Gold Investment

Gold investment is rapidly gaining popularity. That doesn’t come as a surprise. Since time immemorial, the value of gold has been indisputable. Equally important, it keeps increasing which explains the interest that many investors have about it. Are you planning to be part of those entrepreneurs? If the answer is a resounding yes, this article has you covered. It talks about gold investment. In addition to that, it highlights its advantages and disadvantages.

What is Gold Investment? – Meaning

As the name suggests, it is investing in gold. Therefore, instead of investing in funds, stocks, and shares among others, you will choose it as your asset. It is a broad area with several options. They include Bullions whether bars or coins and jewelry. In other cases, you can exploit its market through engagements in gold mining stocks as well as Gold Exchange Traded Funds (ETFs). Once you settle for gold investment, there will be advantages and disadvantages of the same. Check them out!

Advantages of Gold Investment

  • The demand for gold is always high.
  • Regardless of the geographical location, gold’s value and quantity remain the same.
  • Gold investment’s liquidity is undeniable.
  • Gold is limited to mining. Therefore, unlike money, not even the government can reproduce it.
  • It has a global acceptance which enlarges the market beyond boundaries.
  • Its quantity remains the same. That is regardless of the time since purchase.
    Gold doesn’t expire.
  • Expect neither spoilage nor destruction.
  • As compared to others such as stocks, gold investment is relatively safe.
  • Drastic price changes are rare.
  • There is ease of buying and selling especially gold coins.
  • Gold ownership brings satisfaction and pride.
  • You can test gold which minimizes fraud.
  • Both experts and novices can easily indulge in gold investment.
  • It is an ideal option for investment diversification.

Disadvantages of Gold Investment

  • Gold has a high risk of theft.
  • It is a bad idea to consider the gold investment for short-term plans.
  • Failure to test gold can result in settling for counterfeit.
  • Buying it needs substantial capital.
  • For safety, gold’s storage, as well as insurance, is expensive.
  • The future of gold investment is uncertain.
  • If you settle for the gold ETFs, you may incur brokerage fees.
  • The profits are irregular.
  • Its price’s increase depends on demand since it has no interest.
  • Gold investment is not a passive business venture thus you only earn by selling it.
  • You can only exchange gold for money.
  • You can incur a loss if you buy it at a relatively high price.
  • Commissions that gold sellers demand are high too.
  • The international markets have a significant impact on its price. For instance, the stronger the dollar, the lower the costs.
  • There are high chances of government interventions.

Final Words

The discussion above points out the advantages and disadvantages of gold investment. Before embarking on the venture, it is crucial to weigh the above. However, don’t forget that every business involves risk.

By Maureen Muriuki

Essay on Electronic Funds Transfer (ETF): Meaning, Advantages, Disadvantages


An electronic funds transfer, or EFT, refers to the act of transferring money from one account to other electronically by using a computer or mobile network.

EFT has truly revolutionized the way banks run today. An Electronic funds transfer is blindingly faster than transacting via a check. Various leading e-commerce sites such as Amazon, eBay, Flipkart and others are a glowing testimony to the extensive use of technologies such as Electronic Data Exchange (EDI) and Electronic Funds Transfer (EFT).

EFT covers some of the most widely accepted payment systems in vogue including payment cards (credit & debit cards), SWIFT, Online Banking, Mobile Banking, NEFT (National Electronic Funds Transfer), and RTGS (Real Time Gross Settlement) to name a few.Advantages:

  • Saves time by simplifying the payment process.
  • Convenience: Can be done sitting comfortably at home
  • Saves money through cashback & discount
  • Safe & secure
  • Works 24/7
  • Cash flow management
  • Paperless
  • Faster
  • User-friendly
  • Anytime, anywhere banking
  • Helps in customer loyalty & retention
  • Efficient
  • No fear of loss or destruction
  • Widely accepted by all
  • Makes traditional Branch Banking redundant


However, there are a few drawbacks too as far as EFTs are concerned. Some of them are:

  • Highly technical. Not for everyone
  • Fear of account being hacked
  • Enhanced privacy breach risk
  • Limit on daily transactions
  • Limit on the maximum amount to be withdrawn daily
  • Chances of identity theft by unscrupulous elements
  • Needs a computer terminal or access to the internet at all times
  • Crimes like phishing, credit cards theft have increased
  • Leads to impulse buying behavior
  • Not for illiterates
  • Fraudulent bank websites are on the rise
  • Dependency on the power supply
  • Some might prefer paper money to “virtual currency”
  • Decreased human interactions
  • Over-reliance on technology


It is not completely unfair to say that EFTs have brought a fundamental change in the manner business is done around the globe. One can only agree that EFT is one of the most telling inventions of the modern era.

– By Abhishyand Kumar