Features and Benefits of Gold Investment

Features and Benefits of Gold Investment

Gold investment provides diversity and stability to your financial portfolio. Investments play a major role in short-term and long-term financial planning. Hence investing money is equally important as earning it. Considering the swelling gold rate, a lot of investors prefer investing money in gold. It provides them a great financial cover during economic crisis and also offers long-term store of assets. The way the price of gold is updating investors consider gold as a powerful asset. Numerous banks, investment organizations, trade associations and consumer associations provide brighter avenues to gold investors in India.

Gold investment benefits

Investment in gold mines or funds has shown greater impact in the times of increasing gold prices. Gold mine investments provide lucrative investment avenues as compared to physical gold savings.

  • Gold is indestructible and malleable. The demand for it in the market is unceasing. Along with being a popular form of investment, gold is required by the jewelry industry.
  • Gold can be easily transported and it is a universal standard used for assessing the values of various objects.
  • Financial trends shown that gold maintains its value, making it ideal during inflation, collapsed stock markets, low interest rates, weak currency and other economic falters.
  • Gold rate is often stable and always ends on a higher note. Investing in gold improves your investment portfolio and provides financial stability.
  • Down economy doesn’t affect gold price and when the market goes up, the price of gold rise along with it. Gold offers reliable investment option during low stock market.

Ways to invest in gold

Along with the traditional ways of buying gold in physical forms including gold jewelry, coins and bullions; various other ways are also available. These options help you own gold without having the responsibility to safeguard it. Here are the most popular ways to buy gold for investment:

Physical gold

Physical forms of gold including jewelry, coins, bullions and scrape gold can be easily bought and kept. Gold bullions and coins are available in weights as low as 1 ounce to 50 grams. Always choose a reliable, familiar and established gold dealer to buy gold. Some banks also provide gold for investment. Use safe-deposit box or bank lockers to safeguard your gold to keep it safe from theft.

Gold stocks

Gold stocks allow you to purchase shares or stocks in some publicly traded company, mostly mining companies. This type of gold investment is volatile and it allows you to own gold without having the risks of carrying gold in the physical form. Any sort of profit to the company gives you direct profit. These investments also provide dividends as a source of extra income. You can sell your shares in the company whenever you feel like. Keep in mind that all your profit depends on the market prices of gold.

Gold ETFs

Gold exchange trade funds (ETFs) are ideal for authentic investment in gold. ETFs work similar to the stocks in terms of trading and investments. These are online investments and you can track the status of your gold anytime you want. You can buy or sell stocks, depending on the latest gold rate. Another benefit of gold ETF is that they are inexpensive.

About the Author
Religare Online is India’s leading online share and stock market platform, providing a wide array of online share trading services including equity, e-broking, commodities, derivatives and mutual funds.

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