by Paige Moore
In the past few years, GOLD has been proven as the most consistent and finest investment option. Other investments avenues like equity, MF, SIP's, PPF, FD, etc haven't been in a position to match the shine of GOLD. The return on GOLD investment in the past 4 years has existed 25%. Because of the high return and introduction of easy investment methods, people have been flocking to purchase Gold. Most common methods to purchase Gold are listed below:
Jewellery
Most Indians still like the time tested method of buying GOLD in the form of jewellery. Aside from being the most easy form of buying Gold, this also gives a huge satisfaction to the female family members. Women like to possess more and more jewellery (is there any husband who would dare to differ about this J). But the purchase of Jewellery, in my view, is not the best option. Firstly there are 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 on account of 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 a task.
Gold Coins/Bars
Nowadays just about all banks and Gold merchants sell gold coins that are 99.99% pure and therefore are certified by Standard Agencies like Hallmark. Hence the problem of searching pure gold is almost anything of the past. 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, however while selling them they are bought at a discounted price. So though unlike jewellery there is no lack of making charges which but then one still do not get 100% worth of his Gold during the time of selling.
best ira
GOLD ETF
Gold ETF is purchasing Gold in Demat Format. This in my view has the biggest advantage that one doesn't get the delivery of the physical Gold, hence not a problem of securing your purchased Gold. Also Gold might be purchased in small units. One could hold his gold in demat account till he desires. There's only a small maintenance and brokerage charges around the Demat account, so this in my opinion is the easiest and cheapest form of purchasing Gold. Also one could sold his gold anytime in the market price of that particular moment. There aren't any deductions and one gets almost the entire value for his money while selling it.
Gold Funds/Bonds
There is a number of Gold Funds or MF's where one can invest. These bonds invest the money only within the bullion market and therefore are managed by Professional Experts. Therefore if one don't have time or expertise to manage directly using the fluctuations of the gold market he could still invest via these bonds. However most of these bonds have entry and/or exit fees and have a certain lock in period. Which means this form of investment is mostly a long period 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 a small amount on the long time.
Jewellery
Most Indians still like the time tested method of buying GOLD in the form of jewellery. Aside from being the most easy form of buying Gold, this also gives a huge satisfaction to the female family members. Women like to possess more and more jewellery (is there any husband who would dare to differ about this J). But the purchase of Jewellery, in my view, is not the best option. Firstly there are 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 on account of 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 a task.
Gold Coins/Bars
Nowadays just about all banks and Gold merchants sell gold coins that are 99.99% pure and therefore are certified by Standard Agencies like Hallmark. Hence the problem of searching pure gold is almost anything of the past. 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, however while selling them they are bought at a discounted price. So though unlike jewellery there is no lack of making charges which but then one still do not get 100% worth of his Gold during the time of selling.
best ira
GOLD ETF
Gold ETF is purchasing Gold in Demat Format. This in my view has the biggest advantage that one doesn't get the delivery of the physical Gold, hence not a problem of securing your purchased Gold. Also Gold might be purchased in small units. One could hold his gold in demat account till he desires. There's only a small maintenance and brokerage charges around the Demat account, so this in my opinion is the easiest and cheapest form of purchasing Gold. Also one could sold his gold anytime in the market price of that particular moment. There aren't any deductions and one gets almost the entire value for his money while selling it.
Gold Funds/Bonds
There is a number of Gold Funds or MF's where one can invest. These bonds invest the money only within the bullion market and therefore are managed by Professional Experts. Therefore if one don't have time or expertise to manage directly using the fluctuations of the gold market he could still invest via these bonds. However most of these bonds have entry and/or exit fees and have a certain lock in period. Which means this form of investment is mostly a long period 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 a small amount on the long time.
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