Traditionally considered a sign 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 taken a very different dimension. Now, gold will be considered a smart investment option.
Being an investment option, it’s gained notable acceptance all around the world within the last few few years. Consequently, it is becoming the most used investment option among all of the metals. While physical buying of gold remains the most used form of gold investment, the investments entering gold exchange traded funds can also be going up.
You will find a number of investment vehicles for gold such as for instance bars, coins, exchange traded products, certificates, accounts etc. Probably the most traditional way of investing in gold is by buying bullion gold bars. Gold coins may also be a standard way of owning mts gold. Likewise, other vehicles equally are common investment options people opt for.
Today, investors have lots of possibilities to them. Those people who are interested in purchasing gold in physical form, buy it from jewellers, banks or accumulate the metal through monthly schemes made available from jewellers. Those who wish to accumulate paper gold, choose exchange traded funds (ETFs) specialized in gold or open-ended gold savings funds.
While many investors select buying physical gold from local jewellers, experts are of the view that this perhaps might not be an efficient way to purchase gold. You will find possibilities that jewellers may levy mark-up over the marketplace prices. These apart, there are issues like purity and storage/safe-keeping. A lot of experts recommend accumulating gold in electronic form also called e-gold.
This implies, it’s possible to 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 get gold units through ETF route. If he or she does not need a demat account, investing through a gold savings fund made available from most fund houses would have been a good step.
The true worth of the precious yellow metal is inescapable by the virtue of being among the safest investment avenues available. As a matter of fact, even though the worst crisis hits a household, the gold so it holds could 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 think that investment in gold (physical or e-gold) is a smart decision by a person to be studied and so it should engage in every investment portfolio. Whilst the former offers greater psychological satisfaction to the investor, the latter provides better returns and is more tax-efficient. However, both options carry just about the exact same risks and rewards.