Limitations of Investments in Gold and Silver :
(1) Such investment is risky due to thefts, etc.
(2) It is a dead type of investment as profit will be available only when it is sold out and
people rarely sell gold.
(3) Regular income from the investment is not available.
(4) Huge amount of money is required for investment in gold/silver. The general trend is
not favourable for selling these metals. In this sense, investment in gold and silver is
a dead investment.
(5) Investment in gold and silver is not useful for capital formation and economic growth.
Even the traditional attraction for gold and silver is gradually reducing in India.
(6) Import of gold is now free. As a result, investing funds in gold and silver is no more
safe and profitable.
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