The world and specially Indians are completely crazy and on their feet all the time when it comes to their love towards gold. Although people invest a lot of money in jewelry and gold coins, many people are now considering investing in the commodities sector where precious metals are traded. Metals and especially the precious ones like gold and silver have been a choice of investment for people all over the world for a long time now but in spite of all this, there are many aspects that people still tend to overlook when investing in gold. If you too are going to invest in commodities and buy some gold, this is the best stock to buy presently. But keep a few important facts related to it before you make any investment.
Investment options in gold
One does not need to necessary go to a jeweler and purchase gold if you plan to invest in this precious metal. Although it is the most popular option that people consider, there are still a lot of other options that you can focus on. The first option that you should consider are the gold in bullion form. Bullion bars are become popular amongst those who are solely looking for investing their money and do not plan to make a cash out of it any time soon. Another option is to invest in mutual funds that trade based on gold rates. The gold available here is in the form of electronic gold and not something solid in your hand.
The amount of financial liquidity that you have in gold is really low and therefore if you are someone who is expecting continuous cash flow through your investments, you will not be able to get it unless you have purchased gold ETF. It is the only option where you can regularly get dividends. So if you are looking for anything that would offer you regular income, opt for the some other sort of investment coz this is going to be a long.
Gold investment as a hedge fund
Over many years, the gold has proved to be a protection against the increasing inflation. If you check the Mcx gold rate today or the figures dating back a few years, this fact would be proved easily. So if you are looking for some great returns or want to invest when the markets are going down, opt for gold as it would be the best stock to buy then.
Calculating the Risk
In comparison to any other kind of investment that you make through the stock brokers in India, gold is one of the safest bets. Moreover, when the prices of everything were on a rise, in spite of all the figurative declarations that showed inflation drop, the prices of gold were still going up and the fluctuation was negligible.
No matter if you want to put in a few thousand bucks or a big amount that rises to lakhs, you get the option to buy any amount of gold you want as there are no limits.