Traditionally considered an indicator 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 different dimension. Now, gold has been considered a smart investment option.
As an investment option, it has gained notable acceptance all over the world within the last few years. As a result, it has become typically the most popular investment option among all the metals. While physical buying of gold continues to be typically the most popular type of gold investment, the investments going into gold exchange traded funds can be going up.
You can find several investment vehicles for gold such as for example bars, coins, exchange traded products, certificates, accounts etc. The 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 common investment options people opt for.
Today, investors have plenty of options available to them. Those who are thinking about 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) specialized in gold or open-ended gold savings funds.
While many investors choose buying physical gold from local jewellers, experts are of the view this perhaps may not be an efficient way to purchase gold. You can find possibilities that jewellers may levy mark-up over industry prices. These apart, you can find issues like purity and storage/safe-keeping. A lot of experts recommend accumulating gold in electronic form also called e-gold.
This means, one can buy gold through mutual funds. Mutual funds are well regulated and you can find 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 have a demat account, investing through a gold savings fund offered by most fund houses will be a good step.
The real worth of the precious yellow metal is inescapable by the virtue of being one of the safest investment avenues available. As a matter of fact, even when the worst crisis hits a household, the gold that it holds might be put to make use of anywhere in the world.
Regardless of 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 just a smart decision by an individual 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 just about exactly the same risks and rewards.