Gold Investment –
Gold is always considered the best investment. People buy gold in physical terms like jewelry etc. As time advances, it is better to realize that investing in gold through pieces of jewelry is not the only way as there are different ways to invest in gold now. So there are times when the rates fall but still gold always makes a strong upturn. These are some ways you can invest in gold.
- Physical Form Investment –
Traditionally gold is always preferred in its physical form. people buy different kinds of jewelry, bars, and coins. Buying the yellow metal as jewelry seems less of an investment and more of a sentimental value. Gold coins are usually bought in denominations of 5 or 10 grams, while bars have a denomination of 20 grams. All types of physical gold are hallmarked and tamper-proof.
2 . Sovereign Gold Bonds Investment –
These are the safest way to buy gold and are issued by the Reserve Bank of India. They are issued in multiples of 1gm and a particular investor can buy up to 4 kg. They are considered government securities as an alternative to physical gold. They have an assured interest of 2.50% per annum. The tenure for bonds is 8 years, and an investor can withdraw only in the last three years. The investors can buy and sell the bonds on stock exchanges, once the subscription is over. The maximum investment one can make is 4 kg.
- ld Exchange Traded Funds (ETFs) –
Gold ETFs are owning a certain quantity of gold without going through the trouble of actually owning it. There is no risk of physically owning the gold, as Gold ETFs are stored in paper format buying and selling Gold ETFs can happen on the stock exchange with the help of a Demat account and the broker. You can start the investment with as minimal an amount as one gram unit. Gold ETFs can also be used as collateral if the investor wishes to take a loan against them.
- Digital Gold Investment –
Digital gold is an alternative to buying a physical form of gold. The Digital Gold is issued by Metals and Minerals TradingMetals and Minerals Trading Corporation of India (MMTC) in association with Switzerland’s PAMP. The minimum amount one can buy is as low as one rupee. Customers can choose to sell the entire or a fraction of the gold anytime at the prevailing market rates. All these gold are 24K and are certified by the government. It ensures purity and nullifies the chances of fraud. This gold can easily be bought via digital wallet form.
Why Should you Prefer Investing in Gold?
Gold is considered the safest investment with higher liquidity and profitability Returns. However, some investors consider gold returns as extremely volatile but gold proves to be a haven in times of uncertainty for many investors. Let’s contemplate some points that prove gold investment can be a wise decision. No matter what the rate of inflation is, returns on gold investment have always proved to be in line with it. In a nutshell, one can consider it an inflation-beating investment
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