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 taken a very different dimension. Now, gold is being considered an intelligent investment option.
As an investment option, it’s gained notable acceptance all over the world in the last few years. As a result, it is becoming the most used investment option among most of the metals. While physical buying of gold remains the most used form of gold investment, the investments going into gold exchange traded funds can also be going up.
There are numerous investment vehicles for gold such as for example bars, coins, exchange traded products, certificates, accounts etc. The most traditional way of investing in gold is by buying bullion gold bars. Gold coins will also be a common way of owning mts gold. Likewise, other vehicles equally are normal investment options people opt for.
Today, investors have lots of options available to them. Those people who are interested in 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) focused on 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 purchase gold. There are possibilities that jewellers may levy mark-up over the market prices. These apart, there are issues like purity and storage/safe-keeping. A lot of experts recommend accumulating gold in electronic form also known as e-gold.
This means, 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 purchase gold units through ETF route. If he/she does not need a demat account, investing through a gold savings fund made available from most fund houses would have been 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 if the worst crisis hits a family group, the gold so it holds might be put to make use of anywhere in the world.
Despite the spiraling prices, the precious yellow metal has not lost its luster and hence several financial planners genuinely believe that investment in gold (physical or e-gold) is just a smart decision by someone to be taken and so it should participate 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 just about the exact same risks and rewards.