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 brought a very different dimension. Now, gold will be considered an intelligent investment option.
Being an investment option, it has gained notable acceptance all around the world within the last few few years. Consequently, it has become the most popular investment option among all of the metals. While physical buying of gold continues to be the most popular kind of gold investment, the investments entering gold exchange traded funds is also going up.
There are numerous investment vehicles for gold such as bars, coins, exchange traded products, certificates, accounts etc. The most traditional means of buying gold is by buying bullion gold bars. Gold coins are also a standard means of owning mts gold. Likewise, other vehicles equally are common investment options people opt for.
Today, investors have plenty of solutions to them. Those who are enthusiastic about purchasing gold in physical form, buy it from jewellers, banks or accumulate the metal through monthly schemes made available from 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 choose buying physical gold from local jewellers, experts are of the view that this perhaps may possibly not be an efficient way to buy gold. There are possibilities that jewellers may levy mark-up over the marketplace prices. These apart, there are issues like purity and storage/safe-keeping. Quite a lot of experts recommend accumulating gold in electronic form also known as e-gold.
What this means is, one 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 or she can purchase gold units through ETF route. If he or she does not need a demat account, investing via 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 among the safest investment avenues available. As a matter of fact, even when the worst crisis hits a household, the gold so it holds could 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 feel that investment in gold (physical or e-gold) is a smart decision by a person to be used and so it should participate 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 more or less exactly the same risks and rewards.