Is it safe to invest in gold? â Facts worth Sharing
In the midst of economic turbulence, investors from all over the world started seeking a sure and steady place for putting their hard earned money, which will again bring a consistent return round the year. In this context, gold, the second precious and rarest metal, has proved a good option for mid-term and long term investors desire to have steady and secure return. For decades, debate is been made whether it is a good idea to invest in gold or not.
Thus, gold besides being an ornamental object has become a means of investment. Even at times of inflation, value of gold was substantial and never depreciated.
Â Trends Show Investing in Gold is ProfitableÂ
What are the benefits of investing in gold?
Gold is a reliable and important asset for most banks. The trend prevailing in the last 20 years clearly reveal that gold always has yield safe, steady and pretty good return. Gold is a buffer during the times when there is a downfall in the equity market, prices fall in stock market and economic market fluctuates. For centuries, gold has proved many times that it remains to be a valuable and precious asset even times of war, inflation and other such worse situations.
Neither global financial crisis situation nor economic doldrums can affect the value of this stable asset. Investors are assured to get the same value in all situations. Hence, gold investment is certainly a safe haven to all sorts of investors across the market. Again, demand of gold will never go out of the market; rather its demand is exceeding its supply in the recent times. With some companies reducing gold production, its demand is increasing continuously.
The property of being a liquid asset makes it advantageous to invest in gold. Investors have the facility to trade it and earn some cash anytime and anywhere.
How can you invest on gold?
Gold investment can come in variety of forms.
It is Good to Invest in Gold Coins and Bars
Physical Formâ For investment, purchasing gold as bars, biscuits and coins is a wise decision instead of purchasing it in the form of jewelry. Resale value of jewelry is not as profitable as the other forms. Gold bars and coins contain about 99% to 99.5% of pure gold. Hence, they are more money-making alternative for the investors.
EFT â EFT stands for Exchange Traded Fund and is a good investing option for institutional as well as individual investors. You should purchase EFT units of gold in its current value and store them in your account. Later on, you can either sell it off or buy jewelries with it. Investing on EFT is better than buying gold. No worry about the safety and purity of gold.
Gold Investing Fundsâ There are funds that invest on gold mining firms. Some fund investment is done on mining stocks and others divide amongst underlying metal and mining equities.Thus, investing in this yellow precious metal needs a lot of calculation and speculation. You must calculate asset allocation before you think of investing in gold. Gold investment has proved to be the safest option with high return.
Authorâs Bio: Alisa Martin is a regular guest blogger. She writes articles mainly on finances and investment. Her research has discovered a newÂ investment option through Ethical Forestry firm.