It goes without saying that gold continues to play a vital role in building the economies of most nations including India. Although fluctuations have always been a part of downswings in recent year, the actual value of this yellow metal always holds a good possibility for being a stable investment option. If you’re not pretty sure about whether or not you should invest in gold, here are few things that you should educate yourself on.
Gold investment – What is it?
There are various types of gold investments from which you can choose. For example, people may purchase gold futures and options apart from investing in gold ETFs or gold funds. People can also invest in gold by purchasing shares in some company which mines gold or which can directly purchase gold in the form of bullion coins. There are many who believe that purchasing gold jewelry is also a kind of gold investment but ideally it isn’t. The prices of jewelleries include the charge of making them and this cost can be around 10-20% of the entire cost. This is the reason why they don’t reflect market conditions.
Few benefits of investing in gold in 2018
There are certain factors that which play a vital role in making gold a hot favorite among most investors. Here are some of them:
• Universality of gold and high liquidity makes it one of the most favorite choices for the investors throughout the world. It is not only accepted as a mode of payment and a mode of security throughout the globe but it can also be cashed effortlessly.
• The value of gold increased when there’s inflation because it stays more stable than cash or other asset.
• Gold investment is one of the best ways of diversifying the portfolio of an investor because it moves indirectly to currency and stock value.
• The global gold value stays untouched even when there is political chaos. The demand for gold can fluctuate but it never ends.
Investing in gold in 2017-2018
You have to know how prices of gold rise and fall in order to understand whether or not it is going to be a good investment option in 2017-2018. The rate of gold is decides by its demand, supply and its value as investment in the present economic situation. Investors usually rush to purchase gold whenever there’s weakness in the stock market or in the economy. The reason behind is that precious metals hold more value than any other assets.
One more way of forecasting whether or not gold investment is going to be profitable is by analysing the financial statistics of the previous few years. If you find the value of gold being sharply at the same consistent rate, you can expect it to remain the same in the next year as well. For professional help, you can seek help of financial advisors.
Hence, if you’re planning for a debt free retirement, start investing. Diverse your portfolio by including gold and stay safe even during inflation.