Why should we invest our money in gold? Is it a good investment or not? We invest smartly in gold.
Key points
Gold investments beat long term inflation and preserve the value of your money.
Do you know India is Ranked 1st for jewelry consumption in the world? Indians are highly intent on buying Gold and silver; Gold is considered royalty in India.
when its comes to investing mode, various investors doesn’t choose gold as a good investment, because they thinks gold investment is not gave a good returns then stocks & bonds etc..
Here, the great investor Buffet talks about gold.
I recommend you invest a small portion of your investment in Gold because there are a few points about gold investment.
Why should we invest in Gold?
- Gold as high liquidity:
Gold has a High liquidity, it can be easily convert in cash, we can easily buy and sell the gold at any place in the world, such type of option is not available in other assets like stocks, bonds, real-estate, mutual funds etc.
- Gold creates decent wealth.
From 2006 to 2012, gold has given a return of 25% per annum in long term holdings. After seeing the picture, gold has given a decent return to investors in the long term holding period only.
Diversification of portfolio:
gold doesn’t have a high negative correction like stocks and bonds etc…. always gold moves in a positive direction when market corrected, gold is a good diversify investment to pass our next generation, it is a easy money to accept anywhere in the world.
How to invest in Gold:
There are two ways to Invest in Gold in any country, as follows:
- Physical Goods:
It is a traditional way to invest in gold; there is a lot of demand for gold; gold acts as ornaments; Jewelry is considered an investment. and it has zero paperwork, and we want to consider a few things in gold investment. For example, if we buy gold, we need to pay making charges, and after we need to sell the gold, the buyer does not need to consider making charges; he or she only pays the current price of gold, and that’s it.
there is a another way to buy a gold without making charges if we buy gold coins and bars there is no making charges for it, we can sell directly the current price of a gold.
- Invest in gold ETFs and gold funds:
ETF’s stands
Exchange Traded Funds, it is one type mutual funds which we can directly invest in gold with units ,we can buy the gold in units wise scheme, here we have a brokerage fee(0.25 to 0.5 %)of our investment.
you can buy the gold ETF and gold funds in mutual funds, here you can see list of gold mutual
funds available in India.
- Birla Sunlife gold ETF
- SBI gold ETF
- ICICI Prudential gold ETF
- Axis Gold ETF
- Kotak gold ETF
- and also read Top gold ETF’s in India
How much do we invest in gold?
gold investment doesn’t give high returns like shares, mutual funds, real estate..and gold
investment will give the best portfolio diversification, I thought 5 to 10% of our investment is better to invest in Gold investment for portfolio diversification. here there are various gold investment schemes are there we will discuss step by step….
Conclusion:
gold investment is a best investment in long term prospective, but it doesn’t gives a good
returns like share, mutual funds, real-estate, i hope this post is might help full you guys if any doubt feel free to comment below thank you
Happy Investing.
