Traditionally considered a sign of supremacy, beauty and peace, gold holds immense religious value especially in Indian culture and connotes great sacred meaning. Indians, particularly, 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 different dimension. Now, gold has been considered a smart investment option.
Being an investment option, it has gained notable acceptance all over the world in the last few years. Consequently, it has become typically the most popular investment option among most of the metals. While physical buying of gold continues to be typically the most popular kind of gold investment, the investments entering gold exchange traded funds can also be going up.
You will find a number of investment vehicles for gold such as bars, coins, exchange traded products, certificates, accounts etc. Probably the most traditional means of buying gold is by buying bullion gold bars. Gold coins may also be a standard means of owning mts gold. Likewise, other vehicles equally are normal 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 offered by jewellers. Those who wish 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 this perhaps might not be an efficient way to purchase gold. You will find possibilities that jewellers may levy mark-up over the marketplace prices. These apart, you can find issues like purity and storage/safe-keeping. Quite a lot of experts recommend accumulating gold in electronic form also referred to as e-gold.
This means, one can buy gold through mutual funds. Mutual funds are well regulated and you can 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 offered by most fund houses will be a good step.
The actual 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, the gold so it holds could be put to use anywhere in the world.
Inspite 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 a person 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 the exact same risks and rewards.