Traditionally considered an indication of supremacy, beauty and peace, gold holds immense religious value especially in Indian culture and connotes great sacred meaning. Indians, specifically, are of the belief that buying gold would bring them good fortune.
However, with the changing times, the connotation and worth of the metal has undergone remarkable changes. People’s perception towards the precious yellow metal has brought a different dimension. Now, gold has been considered a smart investment option.
Being an investment option, it has gained notable acceptance all around the world within the last few years. Consequently, it has become typically the most popular investment option among all of the metals. While physical buying of gold continues to be typically the most popular kind of gold investment, the investments entering gold exchange traded funds is also going up.
You will find several investment vehicles for gold such as for example bars, coins, exchange traded products, certificates, accounts etc. Probably the most traditional means of buying gold is by buying bullion gold bars. Gold coins may also be a common means of owning mts gold. Likewise, other vehicles equally are common investment options people opt for.
Today, investors have a lot of solutions to them. Those people who are thinking about purchasing gold in physical form, buy it from jewellers, banks or accumulate the metal through monthly schemes provided by jewellers. Those who want to accumulate paper gold, choose exchange traded funds (ETFs) dedicated to gold or open-ended gold savings funds.
While many investors select buying physical gold from local jewellers, experts are of the view this perhaps may not be an efficient way to invest in gold. You will find possibilities that jewellers may levy mark-up over the market prices. These apart, there are issues like purity and storage/safe-keeping. Quite a bit of experts recommend accumulating gold in electronic form also called e-gold.
What this means is, one can buy gold through mutual funds. Mutual funds are well regulated and there are no issues of purity and storage. If an investor has broking and demat account, he or she can buy gold units through ETF route. If he or she does not need a demat account, investing through a gold savings fund provided by most fund houses will be a good step.
The actual worth of the precious yellow metal is inescapable by the virtue to be one of many safest investment avenues available. As a matter of fact, even when the worst crisis hits a family, the gold that it holds might be put to utilize anywhere in the world.
Despite the spiraling prices, the precious yellow metal hasn’t lost its luster and hence several financial planners feel that investment in gold (physical or e-gold) is a smart decision by someone to be studied and that it should engage in every investment portfolio. As the former offers greater psychological satisfaction to the investor, the latter provides better returns and is more tax-efficient. However, both options carry more or less the same risks and rewards.