How to invest in Gold

Gold bars,  coins : It is better to have 5-10% of your net assets as gold. You can invest in Gold coins and bars. You may not get a good price for jewellery because of making and the processing charges involved in it. Gold coins are much easier to sell then the bars. So its better to invest in gold coin majorly then the bars.

Bullion Derivatives : Derivatives for contracts such as gold forwards, currently futures and options trade on various exchange around the world and over-the-counter directly in the market. Investors in India can take exposure  in U.S. commodity exchanges through edge positions or directly invest money through Indian Commodity  Exchange like National Commodity and derivatives Exchange and multi-commodity Exchange.

Gold ETFs : There has been a rise in the GOLD EXCHANGE TRADED FUNDs (ETFs). ETFs are mutual funds that up gold and then issue units for the same value for investors to trade. ETFs allow investors to hold electronically in paperless form. Here the money collected from the investors will be directly invested in gold bullion i.e. fineness form of the gold.

Gold Certificates & Bonds : A certificate of ownership can be held by gold investors, instead of storing the actual gold bullion.Gold certificate allow investors to buy and sell the security without the inconvenience associated with the transfer of actual physical of owing and storing a significant amount of gold, a government backed and guaranteed product is the most convenient and cost effective route to take.

 

 

 

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s