How To Use Gold As A Fruitful Investment
November 17, 2014
Gold is an investment that can give a huge return value in the future. Plus, it can be an asset for style and elegance. It is also considered a universal finite currency which is held by many banks. But, how to invest in gold? Investment in gold isn’t always fruitful and profitable. It should be done meticulously to ensure certain profit and maximize the benefits. So, here are some methodsGTF that one can apply to get the utmost return value for their investment in gold.
The Gold Exchange traded fund is a perfect tool for investing gold. It is a type of mutual traded fund that invests in gold and the units of this mutual fund is flashed in the stock exchange market. These funds help to track the price of gold. Streettracks gold shares (NYSE:GLD) and Gold bullion securities (LSE:GBS) are two popular ETF’s in the market. These can be purchased from stockbrokers.
2. Investment in paper gold
Another way of investing in gold is to put your money in companies that are either exploring gold deposits or mine gold. Investing in mining companies can be riskier than investing in gold alone but it has its benefits as well. But, it would be shrewd decision to diversify the investments in many companies. Gold can also be invested through financial products like options and spread betting. These buying decision enlarges the opportunity to get a higher leverage in one’s investment. The decisions to invest should not be rash as a wrong decision has the potential to bankrupt the investments as well.
3. Investment in physical gold
Purchasing physical gold or jewellery can be a smart decision for future benefits. One can enjoy the luxury and style of the ornaments and pass it to their next generations. If the market price of gold is increasing rapidly, the return value for those gold is a large sum of money after a few decades. But, this also has some negative aspects. Extra money is spent on the designing of these jewellery items which is about 10 to 20 percent of total cost. So, while selling those items to jeweler, he buys the item in a much lower price value than the prevailing market price.
4. Investment in bullion coins and bars
Owning these legal investment-grade bullion coins and bars can be a smart investment as these things are tax free and stamp-duty free. Their values are relied solely on price of gold following bullion the bullion price. Gold, white gold(platinum),silver are available in bullion forms minted in countries like US, UK, Austria, Australia, South Africa ,China and many more.
5. Owning the gold certificates
The gold certificate is also known as the unallocated gold. The actual gold is not owned through this but a promise by the Perth mint is owned to give back the value of gold to the owner. This Perth Mint Certificate programme is the one and only government supported valuable metal certificate programme in the world. There are no any custom fees, insurance and initial shipping for this programme. So, this is a perfect investment to get maximum benefits.
These are some of the investment tips for the people who are willing to investment in gold. Hope this article was helpful to you all.