Let us discuss the methods of investing in gold and the benefits of it.
Gold can be purchased in physical form.
If 96 percent pure ornaments are bought then one must see the Hallmark sign.
Hallmark sign: It is a symbol of purity of the ornament.
It bears the stamp of the manufacturer and also the laboratory in which it was tested.
99.
99 percent pure Gold: It is of highest purity.
It is available in coins and bars.
It must bear Hallmark sign or stamp of World Gold Council.
Gold E T F s: These are exchange traded units of the same metal.
The benefit is that it can be converted to cash easily without any deduction in making charge.
It is not the physical way of keeping Gold.
Benefits: Hedge against inflation: Gold is a hedge against inflation.
It is assumed that a particular amount of the metal can always buy the same amount of goods irrespective of the time.
Security: Keeping the metal provides security in financially uncertain times.
Liquidity: This metal can be converted to cash easily and hence can be converted in times of need.
In this case it is advisable to buy the purest form of the metal.
E T F s offer easy liquidity.
Loan: Many financial institutions offer loan against this precious metal.
Loan can be 75% of its market value.
In this manner an investor can meet his immediate demands without having to sell his assets.
H D F C bank offers such facility.
Conclusion: Thus investing in this metal is highly profitable and every investor must make it a part of their portfolio.
Gold will never lose its sheen.