If you intend to invest in gold especially now when it is trading at historic levels of 1600-1800 $/oz.
However, from the asset allocation point of view, some portion of one’s portfolio should be in gold. Accordingly, let us explore the different avenues available today to invest in gold.
a) Physical gold from Jewelers/banks
Buying physical gold from jewellers has been the traditional way since
centuries. And within physical gold, jewellery has been the most common form of
purchase. The balance, in relatively small quantities, has been the gold coins
and bars.
b) Gold ETFs
Gold ETFs are mutual fund schemes that invest only in gold. Thus it is as good as holding gold; except that it is held electronically. Generally 1 unit of Gold ETF is roughly equivalent to 1 gram of gold and hence its price is also roughly equal to price of 1 gram of gold. You can buy a minimum of 1 unit of Gold ETF.
Gold ETFs are mutual fund schemes that invest only in gold. Thus it is as good as holding gold; except that it is held electronically. Generally 1 unit of Gold ETF is roughly equivalent to 1 gram of gold and hence its price is also roughly equal to price of 1 gram of gold. You can buy a minimum of 1 unit of Gold ETF.
c) Equity-based Gold Funds:
These are mutual fund schemes that instead of investing directly in gold buy the equities of companies engaged in mining, extraction, processing and marketing of gold.
These are mutual fund schemes that instead of investing directly in gold buy the equities of companies engaged in mining, extraction, processing and marketing of gold.
d) e-Gold
Launched recently by the National Spot Exchange, e-gold is also an electronic form of holding gold except that herein you are directly the owner of gold whereas in Gold ETF the Asset Management Company is holding the gold (of course, on your behalf).
Launched recently by the National Spot Exchange, e-gold is also an electronic form of holding gold except that herein you are directly the owner of gold whereas in Gold ETF the Asset Management Company is holding the gold (of course, on your behalf).
Unlike Gold ETF, e-Gold also offers
the facility of physical delivery. However, given the additional costs involved
viz. delivery charges, VAT and octroi, it may be better not to opt for physical
delivery.
e) Gold Futures
This is just a short term product useful mainly for trading in gold and not investing in gold. Hence, it is kept out of the purview of this article.
This is just a short term product useful mainly for trading in gold and not investing in gold. Hence, it is kept out of the purview of this article.
Source:
http://www.moneycontrol.com/news/gold/many-ways-to-investgold-which-is-best-option_641164.html
Of course there are many options in the market for investing in gold. It is a good idea to invest money in gold but as by investing in gold benefits and loss go side by side. So one should be aware of everything what is going on and always consult with experts before investing in gold.US Gold Bureau
ReplyDeleteTrading in Gold is the better option as in this the level of depreciation is too low often negligible. Also can get the right value for the amount they invested. I got better returns in Gold Trading as it's market depended i took the expert service from #SquareIndia Advisory Pvt Ltd. They helped me in each and every possible manner to secure my investment also provided better returns for my investment at the right time. So, investors can go for Gold Trading and avail the service from companies like #SquareIndia Advisory Pvt Ltd for getting better returns.
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