Different Ways to Invest in Gold in India
The Gold Attraction
Since time immemorial, gold has been coveted by mankind. The yellow element was found to be ideal for shaping into items of jewellery, which are pleasingly attractive. The scarcity of gold, and the low yield compared to man-hours spent on extraction meant it became a valuable commodity. This led to it becoming the metal of choice when striking some of the earliest coins of the earliest currencies. Until as late as the 1970s, many currencies were directly tied to the price of gold. In modern times, gold has been recognised to have the ideal properties for use in production of electronic items. It conducts electricity very well and does not tarnish, making it perfect for plating the contacts in electrical connectors. This has guaranteed that the price of gold remains strong as it is always in demand.
What are the Gold Investment Options in India?
If you are a lady, then you may have a strong preference for physical gold in the form of jewellery which can be worn and can be the envy of onlookers. However, from an investor’s point of view, jewellery would not necessarily be the best choice. If you are simply using gold as a safe investment (as gold has historically proved to be a very safe form of investment) then you can make the investment even safer by NOT holding the physical gold yourself.
The Best ways to Buy and Invest in Gold in India
Jewellery made from gold can be purchased through the usual channels, but you should be mindful of what to look for in terms of hallmarks to ensure that you are actually getting the mix that you think you are paying for. Almost all gold jewellery is a mixture of gold, and other metals. The hallmark will help to decipher the actual gold content.
Physical gold can also be purchased in coins, wafers or bars. Coins are for relatively small amounts are usually for giving as gifts to be saved long-term. Wafers are for larger amounts for bigger investors, and bars are for very large amounts, often held by big businesses, governments, big investors, or as a means of transporting the gold from source to destination when it is to be used in an industrial manufacturing process. The nature of gold means that it is very easily melted and changed into different shapes, which can be a boon or a curse depending on the situation.
Don’t let your Gold Drive your Brain to Meltdown
If you are a jeweller, the fact that gold can be melted, mixed and shaped easily will make it an ideal material to work with. On the other hand, the fact that gold is so easily melted and reshaped means it is very easy for criminals to quickly melt down any gold piece to the point that it is unrecognizable. This makes stolen gold objects very difficult to recover. Obtaining proof that a quantity of gold was once a specific article is almost impossible. This makes gold a target for criminals and owners will need to take careful measures to ensure their gold is safe. This often involves paying for space in secure, guarded lockers in bank chambers or such like. If this is the case, then you are actually paying to keep your gold. This will slightly offset what you are gaining from the rise in its value over time. We can say that there is some ‘cost to own’ physical gold.
How can you Invest in Gold in India with no Cost of Ownership?
Luckily there are safe ways of investing in gold, without the associated costs or worries of having to hold and protect it yourself. Sure, you will not be able to wear it or show it off, but you will have the certificate to prove that you own it, and you can still buy and sell it as and when you wish, at the current market price. This is called ‘Digital Gold’. There are several ways to obtain digital gold. The most obvious one maybe via the commodity exchanges such as the Multi Commodity Exchange (MCX). There are also other ways to buy, such as the government’s Sovereign Gold Bond Scheme. With digital gold, you will not get physical gold, but you get all the same investment benefit as if you held the physical gold itself. In many ways digital gold is safer, as you do not have to protect it in storage, or worry about its safety in transport while buying and selling it.
So many Options. Where can you get Gold Investment Advice?
Not only for advice on gold investment, but indeed any investment related queries you may have, can be put to GOODWILL INDIA. A top-value, full-service brokerage company who are ideally placed to offer you personal advice based on your specific circumstances. They are well known for offering a helping hand to anyone who is looking to take their first steps into investing or trading. Call today for expert advice to help you decide which options are best for you. If you decide to become a customer of GOODWILL INDIA you will not only get some of the lowest brokerage charges in the whole of India, but you will also get access to a number of special bonus features which will cost you know extra, but will provide you with huge added value. Among the bonus features are such goodies as FREE account opening, FREE training sessions, FREE mobile application, FREE telephone trading and more!
Call GOODWILL INDIA today on +91 80122 78000, and discover how easy it is to invest in gold and other commodities.