Buying Gold: Your Best Investment Bet!Tuesday, December 16, 2008 6:07 am
See your investment shine like pure gold!
Yes, there isn’t more inviting investment like buying gold. If you go back in time, gold has been the most sought after, valued and cherished possession. It has ruled the roost for numerous reasons and purposes. Own it to adorn a beautiful bride, feel the royalty and gift gold coins to your friends or simply hoard gold for no reason and it will still yield something precious. Probably, gold is the only investment that takes the least from you and bounces back with great returns.
As the price of gold grows, you can keep your fingers crossed and feel content that your investment is going to reap coveted returns.
Gold witnessed tremendous rise in its price in recent times while the economy suffered a setback. It can be easily said that if you have invested money in gold, you definitely have an edge over market trends. There could be inflation, where prices soar high or deflation when production decline; whatever it may be but a gold investment always remains as a trump card with you.
Another point to take note of is that when there is dearth of gold supply, its price tends to shoot up, which is again a good sign for investors. There has been shortage of gold supply from mines since the year 2000. It takes almost a decade for new gold mines to drive into production.
India is one of the nations that simply can’t do without gold. When the wedding season is around the corner, everyone rushes to buy gold. So, don’t be apologetic about buying expensive jewellery as the time is bang on for gold purchase. If we glance a little bit at the last three decades, the current decade is supposedly the most promising one for gold’s demand. The 80s was a dismal period for gold. Though, it’s not a very enthusiastic time for stocks, but with diversified investment like blending gold with stocks and bonds in a portfolio to minimize the instability and risk in the larger picture would be a wise move.
If you go by the World Gold Council, it’s a brighter idea to invest in gold than in any traditional investments like equities and bonds. Gold’s price is evaluated by factors other than its demand and supply. Gold is always in demand, no matter what. Another point to feel good about is that it’s priced in US Dollars, which is supposedly higher in value than our local currency. As said earlier, the price of gold goes on a different lane from factors that influence assets like domestic fixed deposits. Inflation draws a gloomy picture in the economy but the price of gold does not bear its brunt. On the contrary, more money drives to gold during inflation.
When the stock market is bleak or when the dollar descends, gold still remains in the safe zone investment because gold prices get higher in such state of affairs.
With so many investment options in gold like gold bars, numismatic coins, and gold accumulation plans by banks and financial institutions and gold mutual funds, there are more reasons to invest in gold. Quite a few investment options are available to put ones money in the yellow metal across the world.
Gold Savings Accounts shell out gold in the form of gold coins and currency equivalents as your account is credited on regular intervals.
A Gold Accumulation Plan works like a monthly debit from customer’s savings account, which is backed by 100 percent Physical gold.
There are Gold Chits run by jewelers where annually, homemakers can buy gold jewellery or coins from the same jeweler worth the total money they have paid in installments.
Gold Deposit Scheme is one of the options to endow in gold where one can keep gold in banks for a certain time like a fixed deposit and can claim whenever required. For best returns, avoid buying gold in wedding and festive seasons. Security Exchange Board of India educates that gold has been the second most favored option among the Indian public after deposits in banks. With an emergence of liberalization measures in India, there are many new options to invest in gold bars, gold coins, gold funds and gold options. Unlike other investments, a gold investment not only earns a decent rate of return but there are no whine lines about keeping it secure.
So, feed the hen well that bears golden eggs.