Over the years, Gold has remained the best asset in terms of investments and a majority of people invest in the metal. It has gained so much popularity that it has also benchmarked other commodities such as oil. A large number of investors have turned to gold as the traditional hedge against inflation. In the year 1970, prices of gold soared from $35 to $850, against an environment of rising prices of the oil, a stock and real estate crash and high inflation. But these days, gold can also be purchased online.
Out of many, one of the problems for gold bugs is where to store them, People have found that stuffing gold bars under the mattress is not particularly secure, and at the same time, gold is such a heavy metal that it could lead to collapsing of the floor. So it is quiet fascinating to know, that there is a solution available online at the internet. Last year in autumn, a system of gold depository receipts was launched on the New York Stock Exchange traded under the symbol GLD.
In the past year, the gold return on an average has been somewhere about 35 per cent. But if someone plans to purchase gold for the purpose of investment, please ensure that the deal is secured. In the past, Gold has seen good returns in investments because of the fears of inflation and the equity markets in downtrends. It is a very nice option to be a great shield against inflation. Some analysts have estimated that the rate of average Gold is going to be somewhere about Dhs 110 (per gram) soon. But holding too much of gold in the form of jewellery is not an economic method because on selling it back, one loses approximately 10 per cent of the value of gold and also the preparing charges that are supposed to be paid at the time of the deal.
Those who wish to buy gold for the purpose of investment prefer to buy bars and medallions. This section has become quiet popular and successful over the last few years. Although bars and coins do not involve charges for preparation, the sale and discount is valid even if the gold is not hallmarked. Gold which is hallmarked reflects a very low discount and can be resold at a value which is quite lower than the value in the market. If one wants to save money by investing in jewellery, buying gold coins is a more convenient option to save rather than buying jewellery. These coins are accepted by gold jewelers in return for gold used in jewellery. If you plan to sell off the gold coins, you might get a discount of about 4 or 5 per cent, inconsiderate of the purity fact of the gold coins . But if you own quiet a nice quantity of gold, provisions need to be made for insurance and storage as it is not secured enough to keep a large quantity of gold back at residential places like a home.
“Two important Gold bodies, that were established more than a year ago, UTI Gold ETF and Gold Benchmark ETF have been able to deliver over 40 per cent returns in the previous year. In others’ case also, there have been positive returns for over months, in contrast with debt and equity funds that have brought mediocre and negative returns. However, the two world gold funds, which invest in stocks of gold mining companies, have had to suffer a fate similar to other equity funds”.
It is recommended that investments should be made in Gold as a commodity. Gold funds fundamentally invest in Gold mining companies. If one buys a gold fund, he actually makes investment and takes a risk on that company instead of gold. Therefore, all one needs to do to hold, own and trade online with gold is to open an account with a stock broker online. This is surprisingly very easy and only involves returning and completing a form with a copy of your passport, and funding the account with a transfer of the file. Apart from the fact that inflation strongly picks up, the real estate rates turn negative which is not good for the US dollar, and positive for the assets which have a fixed supply.