Why and How to invest in Gold?
As we all know Gold has always been a safe asset class which provides a safe hedge against inflation pressures.
But in the last couple of years, Gold has given exceptional returns as an asset class.
Investing in Gold has been the best way to safeguard your investments against unstable financial markets.
Will this Gold Dhamaka continue?
Well, that depends on a lot of factors, some domestic factors and a lot of international factors (such as Dollar Price etc).
Why is gold such a good investment?
First of all, Is Gold really such a Good Investment.
In the last couple of year, it has been.
Gold gave exceptional returns over the last couple of years.
But if see over the last 20 years, the average return from Gold has been around 7%.
So, if the past trend continues,
one could expect around say 6-9% returns from gold in the long-term.
So this makes Gold a Safe and Conservative Investment in the long run.
Another aspect to look at is Gold has an intrinsic value that does not depend on the value of the paper currency and it does not rely on the state of the country’s economy, whether it is on the up or downtrend.
Hence, investing a portion of one’s investment portfolio in gold is generally advised.
What are the best ways to invest in gold?
Gold is generally bought for various reasons. If you are buying Gold purely as an investment then you here are some of the ways you should consider.
Buy Physical Gold in the form of Gold Bars or Coins.
Don’t buy Jewellery. Buying Jewellery as an investment is a losing proposition because of low resale value. Always buy as Bars or Coins.
Gold ETFs
Buying Gold Exchange Traded Funds (ETFs) is a Good Idea.
These funds are listed and traded on the stock exchange i.e.
investors can buy and sell them like any other stock using your Demat Account.
Gold ETFs are traded close to real-time gold prices in the market, that is, ETF prices move up and down with the market price of gold in the conventional marketplace.
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