Traditionally considered an indicator 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 very different dimension. Now, gold has been considered a smart investment option.
Being an investment option, it’s gained notable acceptance all over the world within the last few years. As a result, it has become the most used investment option among most of the metals. While physical buying of gold continues to be the most used type of gold investment, the investments starting gold exchange traded funds is also going up.
There are a number of investment vehicles for gold such as for instance bars, coins, exchange traded products, certificates, accounts etc. The absolute most traditional way of buying gold is by buying bullion gold bars. Gold coins may also be a standard way of owning mts gold. Likewise, other vehicles equally are normal investment options people opt for.
Today, investors have plenty of options available to them. Those who find themselves enthusiastic about purchasing gold in physical form, buy it from jewellers, banks or accumulate the metal through monthly schemes offered by jewellers. Those who want 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 invest in gold. There are possibilities that jewellers may levy mark-up over the marketplace prices. These apart, there are issues like purity and storage/safe-keeping. Quite a lot of experts recommend accumulating gold in electronic form also referred to as e-gold.
What this means is, you 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/she can get gold units through ETF route. If he/she does not have a demat account, investing via a gold savings fund offered by most fund houses would be a good step.
The true 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 though the worst crisis hits a family, the gold that it holds could possibly 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 really a smart decision by an individual to be used and that it should be part of every investment portfolio. While 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 exactly the same risks and rewards.