As we know Gold is known as precious metal. Its importance never falls down and it has proven to be the best friend of investors because whenever person needs money urgently, they can take loan on gold and resolve their problem. Nowadays, investment in gold is best option because it is expected to rise in prices of gold after 2 month. So if you invest today in gold, you will be benefited in future. Gold is popular as long-term investment option and is considered as additional option in an investment portfolio. It has high liquidity also.
HOW TO INVEST IN GOLD
You can invest in gold in many ways. Some of the best ways to invest in god are as follows:-
1. GOLD JEWELLERY: – Investment in gold jewellery is one of the traditional ways. You can buy gold jewellery of your choice from the jeweller. But if you want good return then you should avoid this investment option because investment in gold jewellery includes not only the price of gold ,but also the making charges of gold and also you can run in loss when you resell jewellery in future because you don’t get the full amount.
2. GOLD BAR:- If anyone interested in buying physical gold, then Gold bars or Gold coin is the best option to invest other than gold jewellery as it does not include making charges. Also, Gold jewellery is made of 18 carat to 22 carat, but gold coins and gold bars are made of 24 carat of gold.
3. BUYING SHARES OF GOLD MINING COMPANIES:-Buying of shares of Gold mining companies is another better option of investment in gold. There are more than 500 gold mining companies in India. The share prices of these companies also depend on the gold prices in India and other factors like cost of production.
4. GOLD ETFs (GOLD EXCHANGE TRADED FUNDS):- Gold ETFs is an open ended mutual fund. For investors, God ETFs is the best option to invest because it is safer than buying physical gold and also eliminate any additional cost like making charges, storage and carrying cost. Gold ETFs are listed and traded on stock exchange. Due to this DEMAT account is compulsory for this. This investment option includes a brokerage fee, which is very nominal for buying and selling of gold.
5. GOLD SOVEREIGN BONDS: – Gold sovereign bonds are the safest way of investment to buy digital gold because these are issued by the Reserve bank of India on the behalf of Government of India. They provide a return of 2.50% p.a on sovereign gold bonds. Investors can invest in these bonds to buy maximum gold of 4kg. These bonds have a tenor of 8 years and has the exit option from the 5th year onwards.
WHEN TO INVEST IN GOLD TO EARN A HIGH RETURN As Gold is popular for the long term investment, so investors should invest in gold for at least term of 5 years to maximize high return. Before investing in gold, do a thorough research on the circumstances under which gold investment would be the best option.
Disclaimer : Investors are requested to invest in Gold after doing proper research and analysis. The views given above are based on the analysis of the editor.