Traditionally considered an indicator of supremacy, beauty and peace, gold holds immense religious value especially in Indian culture and connotes great sacred meaning. Indians, in particular, 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 an intelligent investment option.
As an investment option, it has gained notable acceptance throughout the world within the last few years. As a result, it is becoming the most popular investment option among all of the metals. While physical buying of gold continues to be the most popular kind of gold investment, the investments going into gold exchange traded funds is also going up.
There are several investment vehicles for gold such as for instance bars, coins, exchange traded products, certificates, accounts etc. The most traditional means of purchasing gold is by buying bullion gold bars. Gold coins may also be a typical means of owning mts gold. Likewise, other vehicles equally are common investment options people opt for.
Today, investors have a lot of options available to them. Those who find themselves interested in purchasing gold in physical form, buy it from jewellers, banks or accumulate the metal through monthly schemes provided by jewellers. Those who would like to accumulate paper gold, choose exchange traded funds (ETFs) dedicated to gold or open-ended gold savings funds.
While many investors go for buying physical gold from local jewellers, experts are of the view that this perhaps may possibly not be an efficient way to buy gold. There are possibilities that jewellers may levy mark-up over the marketplace prices. These apart, you will find issues like purity and storage/safe-keeping. A lot of experts recommend accumulating gold in electronic form also known as e-gold.
What this means is, one can buy gold through mutual funds. Mutual funds are well regulated and you will find no issues of purity and storage. If an investor has broking and demat account, he or she can purchase gold units through ETF route. If he or she does not have a demat account, investing by way of a gold savings fund provided by most fund houses would be a good step.
The real 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 so it holds could possibly be put to utilize anywhere in the world.
Inspite of the spiraling prices, the precious yellow metal has not lost its luster and hence several financial planners think that investment in gold (physical or e-gold) is really a smart decision by a person to be used and so it should participate 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 pretty much the exact same risks and rewards.