The Pros and Cons of Buying Gold as an Investment: What You Need to Know
Introduction
One of the most popular investment option is investing in gold. However, in the recent past, the gold prices have risen significantly and are now sitting at an all-time high. The year-on-year increase has been more than 50%.
This might have come as a surprise to a lot of people, especially since gold prices have been falling for the past few years. This has given investors a moment of pause and uncertainty regarding the prospects of gold as an investment option.
I would like to shed some light on the different investment types of gold to answer the queries of the investor’s mind before investing in gold. 1. Physical Gold: There is a physical limit to the quantity of gold that is estimated to exist in the world.
Buying Gold
Gold has always been a popular investment option for people and experts alike. Due to the fact that there is very little availability of other investment options, people have come to prefer gold as a good option to put their money.
Gold is a form of investment, and due to the fact that it is harder to turn it into liquid cash; it is the best option to put your money in for the long term. For those who are looking for a perfect investment for their money, a good way to choose would be buying gold bars and coins.
Buying Digital Gold in India Gold investment through Indian stock markets like NSE Nifty, Bombay Stock Exchange and BSE Sensex is popular among the Indians. However, due to the government rules for buying gold, the same is not available to the investors.
Selling Gold
How To Trade Methodology Used To Build This Research For calculating the pricing of gold, the prices of GLD and IAU are used. For calculating the price of bullion, the prices of LBMA and COMEX were used. The Price of Gold In India:
The cost of buying gold in India is influenced by several factors. These factors include the currency exchange rate, inflation rates, taxes, etc. Price of Gold in India 2017: On the 11th of April 2017, the gold price in India increased to Rs. 26,306 per 10 grams.
That was the highest price per 10 grams of gold in 2017. Which Is The Best Gold ETFs to Buy? The table below contains a few gold ETFs that you can choose from depending on your needs. Gold ETFs Overview: Not many people know that Gold ETFs exist. But they actually do.
Pros And Cons Of Investing in Gold in India
It is an asset that can provide a stable and long-term source of income. A major part of a jewelry shop is dedicated to this investment of gold. Gold and other precious metals are considered good assets that are highly secure and do not depreciate.
You can choose to buy gold bars, gold coins, and various gold-based jewelry for investment purposes. Cumulative investment of gold is never lost and can be turned into a fixed deposit. Cons of Gold Investment Buying gold at the time of a crisis is risky.
It is not liquid and has to be sold at the earliest if you want to withdraw the amount that you have invested. The gold could be stuck with the customs or the bank. In order to ensure that your gold is safe, you should invest in secure and insured gold jewelry.
Cons of Gold Investment
There are many pros of gold, but there are also a lot of disadvantages that you need to know about. The prices of gold are very volatile and volatile means a lot of volatility. When the value of gold has dropped or risen it could take years to get back to its previous level.
People use different ways of investing in gold and it depends on your own risk tolerance and goals. To help you understand some of the pros and cons of buying gold as an investment, here is a quick guide about gold investment in India.
When to buy gold At this time, one of the best times to invest in gold is when the prices are on the rise. When the prices of gold rise you can make more money.