IS GOLD A GOOD INVESTMENT? WHICH IS THE BEST WAY TO INVEST IN GOLD?

INTRODUCTION

You must be noticing that people are considering Gold investment as a hedge against and a good store of value against the thick and thins. However, holding Gold in investment portfolios comes with specific amounts of risks and a unique cost. The prospective investors can invest in gold through exchange-traded funds, associated companies or by purchasing the stock in gold miners. Moreover, some people argue that Gold no longer holds the barbaric value and monetary qualities of the past. Presently, in the modern economic environment, paper currency is the prime money of choice. Must Read: Tomas Von Reckers

GOLD INVESTMENT IN MODERN ECONOMY

We all know that Gold no longer backs up the US dollar. But still, metal carries strategic importance in today’s society. Metal is still essential for the global economy to run. The Central Bank and the International Monetary Funds hold more than one-fifth of the above-ground Gold. In regards to the long-term global economy, several central banks also keep on adding Gold to their Gold reserves.

WHAT ARE THE FACTORS WHICH MAKE GOLD INVESTMENT THE BEST OPTION?

A TOP TOOL TO BEAT INFLATION

Gold is a good hedge against the debasement and inflation of the currency. In general cases, the prices of Gold remain stable as compared to the prices of other assets. As such, it outperforms the other asset classes and absorbs the economic shocks better. On the other hand, due to inflation, the price of gold rises and erodes the value of money by lowering the buying power of the US dollar. Eventually, gold investments yield higher returns than inflation.

CONSIDERABLE RATE OF INTEREST

Amidst the suffering of the Covid pandemic, central banks have been cutting down the rates of interest. As such, in India, the monetary policies aim to evolve the macroeconomic conditions for the economy to attain sustainable growth and survive within the target inflation rate. However, under such a scenario, the RBI moves the fixed income in Gold to a low rate environment. As a result, post-October 2021, the price of Gold has seen a significant shot.

EASY LIQUIDITY

The liquidity offerings by Gold make it one of the best investment option tools. In comparison to other assets like bonds and stocks, Gold is an easy-to-liquidate asset which, in times of emergency, can be an investment cushion for investors. In addition to this, physical gold has a vast market where one can easily find purchasers. However, it is essential to understand that the rate of return for Gold can differ from time to time.

WHAT ARE THE BEST WAYS FOR GOLD INVESTMENT?

For ages, the conventional way of investing in Gold has been to purchase physical Gold in the form of bullions, jewellery or coins. But, as the world is moving ahead, investment procedures are also changing. Now, you can invest in gold through exchange-traded funds or digital gold as well. If you wish to invest in digital gold, you can rely on ABinvesting for the safety and security of funds. Here are the best possible gold investment options for you to avail yourself of today.

INVESTMENT IN SOLID GOLD

Purchasing physical Gold is now a cliche process for many prospective investors. The physical Gold can appear in the form of gold biscuits, bars and coins. However, this is the purest form of buying and involves minimal risk. The investor can avoid the risk of forgery. But at the same time, the investor can also be on the verge of risk against theft and storage.

GOLD SCHEMES

You must have seen that the jewellers come out with gold schemes from time to time for their valuable customers. Under such schemes, the investor has to invest a certain preferable amount, just like SIP, for some time. After the maturity of time, the investor gets a lump sum amount from the jeweler for which the former can purchase Gold.

DIGITAL GOLD

In recent times, digital Gold has seen a lot of popularity in the financial marketplace. Different platforms provide space for the investors to purchase and sell off their Gold just like any other digital transaction. A investing is one such platform which gives you surplus room to trade with Gold. Their platform is user-friendly and gives a hassle-free trading experience. However, the traders going by this method should be careful with the platforms to avoid forgery.

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SOVEREIGN GOLD BONDS

The Reserve Bank of India introduced Sovereign Gold bonds in the year 2015 to offer an alternative to gold investment instead of purchasing physical Gold. It comes with a five-year lock-in period where you can redeem your bond in cash later.

THE BOTTOM LINE

Gold is a hedge against inflation of the currency. Undoubtedly it has become one of the best possible investment options for prospective investors. The gold investment comes with unique strategies and potential risks. However, you can now trade Gold through online ways as well. Simply log in to ABinvesting.com, create an account and begin to trade Gold like any other asset. Moreover, you must be careful of the platforms you select to avoid risks of forgery, theft and storage.