Traditionally considered an indication 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 brought a different dimension. Now, gold will be considered a good investment option.
Being an investment option, it’s gained notable acceptance throughout the world within the last few few years. Consequently, it has become the most popular investment option among most of the metals. While physical buying of gold remains the most popular kind of gold investment, the investments entering gold exchange traded funds can be going up.
There are several investment vehicles for gold such as for instance bars, coins, exchange traded products, certificates, accounts etc. Probably the most traditional means of buying gold is by buying bullion gold bars. Gold coins will also be a common means 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 people who are thinking about purchasing gold in physical form, buy it from jewellers, banks or accumulate the metal through monthly schemes made available from 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 choose buying physical gold from local jewellers, experts are of the view that perhaps might 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. 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 you will find no issues of purity and storage. If an investor has broking and demat account, he/she can find gold units through ETF route. If he/she does not have a demat account, investing through a gold savings fund made available from most fund houses would be a good step.
The actual worth of the precious yellow metal is inescapable by the virtue to be one of the safest investment avenues available. As a matter of fact, even though the worst crisis hits a household, the gold so it holds could 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 feel that investment in gold (physical or e-gold) is a smart decision by someone to be used and so it should be part of 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.