Traditionally considered an indication 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 is being considered a smart investment option.
As an investment option, it has gained notable acceptance all over the world within the last few few years. As a result, it is becoming the most used investment option among all the metals. While physical buying of gold continues to be the most used form of gold investment, the investments going into gold exchange traded funds can also be going up.
You can find a number of investment vehicles for gold such as bars, coins, exchange traded products, certificates, accounts etc. Probably the most traditional way of purchasing gold is by buying bullion gold bars. Gold coins may also be a typical way of owning mts gold. Likewise, other vehicles equally are common 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 provided 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 select buying physical gold from local jewellers, experts are of the view that this perhaps may not be an efficient way to buy gold. You can find possibilities that jewellers may levy mark-up over the marketplace 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 or she can buy gold units through ETF route. If he or she does not need a demat account, investing via a gold savings fund provided by most fund houses would be a good step.
The true worth of the precious yellow metal is inescapable by the virtue of being among the safest investment avenues available. As a matter of fact, even if the worst crisis hits a household, the gold that it holds could possibly be put to make use of 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 a smart decision by an individual to be used and that it should be part of 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 just about exactly the same risks and rewards.