The love that Indians have for gold is a well-known fact. Gold for us signifies not only our rich cultural heritage but also is a way to preserve the wealth of the family. Gold is also auspicious and the one possessing it is considered to be safe from bad times.
This is precisely the reason why gold has been used as an investment for centuries in our country. Gold is a tangible asset that creates a perception of security amongst its investors. Its value never depreciates. Rather the prices of gold have doubled in the last five years. That’s not all, gold is an ideal investment because it’s highly liquid. And almost everyone recognizes the value of gold. Whether it’s an online dealer, a pawnshop, an individual, or a jeweller, anyone can buy it from you.
Now that we know why is gold one of the best investments, here are some of the best ways to invest in gold:
- Gold saving schemes: These schemes are run by jewellers and are one of the easiest ways to invest in gold. All you need to do is to deposit a fixed sum of money periodically with a jeweller of your choice for a pre-decided period. Once this period is over, you can buy gold from that jeweller for the amount equivalent to the deposit. Since this scheme doesn’t involve any interest amount, the jewellers usually add a bonus to the decided amount to cover up for this. Though this is an easy way to invest in gold, you should be doubly sure about the antecedents of the jeweller to avoid risking your money.
- Gold bonds: This is a government of India scheme that allows people to invest in gold without having to hold onto physical gold. These are certificates mandated by the Reserve Bank of India and are denominated in gold grammage. Investors need to pay the issue price in cash on these securities, which then can be redeemed at the time of maturity in cash. One of the most important advantages of this is that you are assured of the market value of gold at the time the scheme matures.
- Gold coins: Some people get a feeling of security only when they physically own and see their gold. That’s why they prefer to buy and invest in gold coins. This helps especially when you are going through not-so-great financial scenarios due to reasons such as inflation and currency devaluation. However, whenever you decide to invest in gold coins, always ensure that the source is trustworthy and you verify the quality of the gold.
- Gold stocks: This is when you buy stocks of a company involved in the gold business instead of physical gold itself. This could be either gold mining or processing. These companies, for obvious profit reasons, sell gold at higher prices than the cost of the mining operations. When you invest in these bonds you get the direct advantage of the rising demand and prices of gold.
- Jewellery: Your favourite beautiful gold earrings are not only a stunning adornment but also an extremely valuable asset. Owning gold jewellery is a great way to protect yourself against market volatility and can be sold at the time of financial difficulties. However, it’s good to know that when you decide to sell your jewellery you will not get the making charges that you initially paid for.
There’s no doubt that gold is an excellent investment option and you can choose any of these options to safeguard yourself financially. Just keep the purpose and cost of investing in mind before you actually take the plunge.