Types of Investments
Relationship of Gold with the dollar has always been in an inverse way. Gold Investment News Emphasizes on the high profitability of investments in Gold, we will illuminate a few glittering facts for investing in gold. Previously where blue chip companies have been magnetizing investments, Gold has now taken the lead. These Types of Investments are the easiest way that you can invest in Gold.
Have a look at our Info graphic.
Why Gold Investments?
For a long time investors have been putting their interest in intangible assets and getting broke for several times a year. Gold allows an investor to have physical ownership of his investments.
Retention in value:
Gold has always retained its value for long. People see gold as a way to pass on and preserve their wealth from one generation to the next.
Hedge against Inflation
Gold proved to be an admirable hedge against inflation, because its price increases proportionally to the increase in cost of living. During 1946, 1974, 1975, 1979 and 1980 U.S inflation was highest. During these years, the average real return was -12.33%, compared to 130.4% for gold.
In many of the Asian countries, gold is knotted into the culture. India being the largest gold consuming nations in the world holds many uses for gold. Gold is considered symbol for wealth. The demand for Gold reaches its highest demand in India and Pakistan when the wedding season (October – December) approaches In China, people store their saving in the form of Gold.
Types of Gold Investments
Various ways of making your investments ‘glitter’
1. Gold Mutual Funds
Theses funds provide an opportunity for investments into fairly large companies that own established mines that produce known quantities of gold each year. This proved to be a very lucrative investment for a many for an extensive time.
2. Closed End Funds
these funds trade at a lower rate or discount to the underlying asset. Investing at a discounted rate helps you earn when you are expecting the prices of gold rise.
3. Gold exchange-traded products
In order to avoid the buying of the physical gold bars financial products supported by Gold bullion can be traded on stock exchange for in investment, these are called Exchange trade funds and ETF’s sell like hot cakes. SPDR gold shares remained the second-largest world exchange-traded product in the world.
4. Gold Coins and Bars
Investments kept in the form of gold coins and bars are the best of investments made in physical form and store personally or held with bank intermediaries.
Gold accounts can be opened which are of different nature. Banks even offer gold accounts which operate like a foreign currency account where gold can be bought and sold at the rate in the international market and earning can be made though operating these accounts.
6. Digital Gold Currency
it’s supported by gold storage at the back and can be exchanged at the international rate of gold. This is a paper gold route where the investor can convert his e-gold units into bars or coins of 99% purity
Trying the most safe and rewarding means of investment can surely help you secure a good return.