Gold has always been considered a better asset for investment. In the last few years, gold has emerged as a safe option for investors across the world. Indians want to invest in gold in every way, so if you are also planning to invest in gold, this time can be good. At present, gold prices are at a four-month low and there is a very positive trend in gold for the long term. Market experts are also advising to invest in gold.
Notably, gold has all the qualities that a traditional investor looks for in an asset class. Investing in gold has always been successful in defeating inflation. On the other hand, if there is an emergency in the future and there is a need for money, you can rely on gold investment. This is because you can sell it quickly in the market.
According to commodity experts, gold can reach in the range of 55,000 to 60,000 in the next few years. 45,000 to 47,000 level is good enough for buying. In such a situation, investing in gold can benefit you. So here are the three best options to buy or invest in gold.
1. Buying Physical Gold
Customers can buy physical gold by visiting any jewellery shop. For the purity of gold, the customer should take care of the standards set by the government. One of the disadvantages of buying physical gold is the fear of it being stolen. At the same time, if you keep it in the bank locker, then you will have to pay for it. Most of the people in the country prefer to buy physical gold only.
2. Investing in Gold ETFs
You can also invest in Gold ETFs. Gold ETF is an investment that can be used to achieve both short and long term financial goals. ETFs that invest in gold carry no risk and no storage requirement.
3. Invest in Sovereign Gold Bonds
Sovereign Gold Bond (SGB) is issued by the government. So Sovereign Gold Bond is guaranteed. The biggest advantage of the Sovereign Gold Bond is that it comes with a fixed interest rate of 2.50 per cent per annum on the initial investment amount. This interest is deposited in the bank account of the investor on a half-yearly basis. In Sovereign Gold Bonds, investors are assured of getting the market price of gold at the time of maturity and periodic interest. The price of Sovereign Gold Bonds is linked to the price of gold of 999 purity and are tradable on exchanges.
Other investment options in gold
Digital Gold – This is a way of investing in gold through an online platform. It can be redeemed as physical gold or resold to the vendor.
Gold Mutual Fund – This is a safe option for investing in gold. Here the customer gets more returns.