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 has been considered a good investment option.
Being an investment option, it has gained notable acceptance all over the world within the last few few years. Consequently, it is becoming typically the most popular investment option among most of the metals. While physical buying of gold remains typically the most popular form of gold investment, the investments entering gold exchange traded funds is also going up.
There are numerous investment vehicles for gold such as for example bars, coins, exchange traded products, certificates, accounts etc. The most traditional means of purchasing gold is by buying bullion gold bars. Gold coins will also be a typical means of owning mts gold. Likewise, other vehicles equally are common investment options people opt for.
Today, investors have lots of solutions to them. Those people 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 select buying physical gold from local jewellers, experts are of the view that this perhaps may not be an efficient way to invest in gold. There are possibilities that jewellers may levy mark-up over industry prices. These apart, you will find issues like purity and storage/safe-keeping. Quite a bit of experts recommend accumulating gold in electronic form also called e-gold.
This means, you 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, she or he can buy gold units through ETF route. If she or he does not have a demat account, investing through a gold savings fund offered by most fund houses would be a good step.
The real 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 if the worst crisis hits a family group, the gold that it holds could possibly be put to use anywhere in the world.
Regardless 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 just a smart decision by someone to be used 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 exactly the same risks and rewards.