Traditionally considered a sign of supremacy, beauty and peace, gold holds immense religious value especially in Indian culture and connotes great sacred meaning. Indians, particularly, 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 completely different dimension. Now, gold has been considered a smart investment option.
As an investment option, it’s gained notable acceptance throughout the world within the last few few years. Consequently, it is becoming the most popular investment option among all the metals. While physical buying of gold remains the most popular form of gold investment, the investments entering gold exchange traded funds can be going up.
You will find several investment vehicles for gold such as for instance bars, coins, exchange traded products, certificates, accounts etc. The absolute most traditional way of purchasing gold is by buying bullion gold bars. Gold coins will also be a typical way of owning mts gold. Likewise, other vehicles equally are typical investment options people opt for.
Today, investors have lots of solutions 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 offered by jewellers. Those who wish to accumulate paper gold, choose exchange traded funds (ETFs) focused on gold or open-ended gold savings funds.
While many investors go for buying physical gold from local jewellers, experts are of the view that perhaps may not be an efficient way to buy gold. You will find possibilities that jewellers may levy mark-up over industry 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.
This means, it’s possible to 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, she or he can buy gold units through ETF route. If she or he does not need a demat account, investing via a gold savings fund offered by most fund houses would have been a good step.
The actual worth of the precious yellow metal is inescapable by the virtue to be among the safest investment avenues available. As a matter of fact, even though the worst crisis hits a family, the gold that it holds could possibly be put to use 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 just a smart decision by an individual to be taken and that 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 pretty much the same risks and rewards.