by Paige Moore
In the past couple of years, GOLD has been proven as probably the most consistent and best investment option. All other investments avenues like equity, MF, SIP's, PPF, FD, etc have not been able to match the shine of GOLD. The return on GOLD investment in the past Four years has been around 25%. Due to the high return and introduction of easy investment methods, people have been flocking to invest in Gold. Most typical methods to invest in Gold are highlighted below:
Jewellery
Most Indians still like the time tested method of buying GOLD by means of jewellery. Aside from being the most easy type of buying Gold, this also provides a huge satisfaction towards the female members of the family. Women like to possess increasingly more jewellery (can there be any husband who'd dare to differ on this J). However the purchase of Jewellery, in my view, is not the best option. Firstly you will find making charges(around 10-20%) when you purchase gold jewellery that is completely lost while selling the jewellery. Also at the time of selling the gold jewellery you will find deductions due to purity, degradation like wear and tear, damage etc. So one never gets the full value of his Gold while selling. Again ensuring safety of jewellery at home is itself an activity.
Gold Coins/Bars
These days almost all banks and Gold merchants sell gold coins which are 99.99% pure and are certified by Standard Agencies like Hallmark. Therefore, the problem of searching pure gold is nearly a thing of history. Apart these coins are available in really small denominations like 2 gm, 5 gm, 10gm, 25gm, etc. So anyone with a low budget could invest in Gold coins. Though these coins not to have the making charges, but then while selling them they are purchased at a reduced price. So though unlike jewellery there is no loss of making charges which however one still don't get 100% value of his Gold at the time of selling.
ira gold
GOLD ETF
Gold ETF is purchasing Gold in Demat Format. This in my opinion has got the biggest advantage that certain does not get the receiving the physical Gold, hence no problem of securing your purchased Gold. Also Gold might be purchased in small units. You could hold his gold in demat account till he desires. There is only a small maintenance and brokerage charges around the Demat account, so this in my opinion may be the easiest and cheapest type of purchasing Gold. Also one could sold his gold anytime in the selling price of that particular moment. There are no deductions and one gets almost the entire value for his money while selling it.
Gold Funds/Bonds
There is numerous Gold Funds or MF's where one can invest. These bonds invest the cash only within the bullion market and are managed by Professional Experts. Therefore if one do not have time or expertise to manage directly using the fluctuations of the gold market he could still invest via these bonds. However many of these bonds have entry and/or exit fees and also have a certain secure period. So this form of investment is really a any period of time investment. Another advantage is the fact that these funds gives the ease to take a position via SIP's. So one could purchase Gold in small amounts over a long time.
Jewellery
Most Indians still like the time tested method of buying GOLD by means of jewellery. Aside from being the most easy type of buying Gold, this also provides a huge satisfaction towards the female members of the family. Women like to possess increasingly more jewellery (can there be any husband who'd dare to differ on this J). However the purchase of Jewellery, in my view, is not the best option. Firstly you will find making charges(around 10-20%) when you purchase gold jewellery that is completely lost while selling the jewellery. Also at the time of selling the gold jewellery you will find deductions due to purity, degradation like wear and tear, damage etc. So one never gets the full value of his Gold while selling. Again ensuring safety of jewellery at home is itself an activity.
Gold Coins/Bars
These days almost all banks and Gold merchants sell gold coins which are 99.99% pure and are certified by Standard Agencies like Hallmark. Therefore, the problem of searching pure gold is nearly a thing of history. Apart these coins are available in really small denominations like 2 gm, 5 gm, 10gm, 25gm, etc. So anyone with a low budget could invest in Gold coins. Though these coins not to have the making charges, but then while selling them they are purchased at a reduced price. So though unlike jewellery there is no loss of making charges which however one still don't get 100% value of his Gold at the time of selling.
ira gold
GOLD ETF
Gold ETF is purchasing Gold in Demat Format. This in my opinion has got the biggest advantage that certain does not get the receiving the physical Gold, hence no problem of securing your purchased Gold. Also Gold might be purchased in small units. You could hold his gold in demat account till he desires. There is only a small maintenance and brokerage charges around the Demat account, so this in my opinion may be the easiest and cheapest type of purchasing Gold. Also one could sold his gold anytime in the selling price of that particular moment. There are no deductions and one gets almost the entire value for his money while selling it.
Gold Funds/Bonds
There is numerous Gold Funds or MF's where one can invest. These bonds invest the cash only within the bullion market and are managed by Professional Experts. Therefore if one do not have time or expertise to manage directly using the fluctuations of the gold market he could still invest via these bonds. However many of these bonds have entry and/or exit fees and also have a certain secure period. So this form of investment is really a any period of time investment. Another advantage is the fact that these funds gives the ease to take a position via SIP's. So one could purchase Gold in small amounts over a long time.
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