Why do people invest in gold? How does one go about investing in gold? Some people will only go as far as investing in jewellery that has gold in it. This can see a significant loss rather than a return of investment. Other people will invest in stocks and still others invest in the physical gold in the form of bullion, in set weights. But are they worth equally? Or some are more valuable than the other forms?
A Gold ETF (exchange-traded fund) is a fund that invests in the standard gold bullion. But before you can invest in these types of funds, you will need to open a brokerage account. There is also what they call mutual funds that offer the Systematic Investment Plans (SIP), which gives the investor benefits in their regular investments. Another one is the Electronic Gold where you can buy gold in denominations and stored electronically. These E-Gold can also be exchanged for the physical gold if required.
Selling gold is quite tricky. Many people do not realise that the seller, or in most cases, the jeweller will sell a piece of gold jewellery with a very large mark up. So if you sell to them, they will offer you lower than the value because they’ve already thought of how much they’re going to sell it in their pawnshops. Be careful with these kinds of jewellers. Also do your research before selling. Bottom line is, if you really want to sell your gold, you are better off selling to private collectors or buyers who appreciate the beauty of the item and are willing at that site to pay a higher price.
One of the most popular and probably the best way to invest in gold is through the purchase of gold bullion, or gold nugget or what we know as gold bars. These bars are being sold anywhere around the world and since they are already formed into bars, these are usually 100% pure. The best way to track your investment is to know the fluctuating market especially if you have pure gold and you know the set weight of your gold. Gold prices are probably the most active in terms of fluctuations but lately, they have seen a steady increase in price. It is also the safest investment compared to other vehicles of investment even though the returns may be relatively lower than the others. If you have pure gold bars or bullions in your safe-keeping, you will be relieved to know that selling your gold bullion is easier to do when the time comes that you decide to unload your gold bars.
Gold jewellery being sold in public places can be inflated so much which means that you cannot really guarantee a good return on your investment. Not so with paper investment, if you invest in physical gold – something tangible that you can see and touch. It will be easier to buy or sell this type of gold. Be careful with what and how you invest. Things can get tricky especially with a very valuable commodity such as gold. Don’t play it by ear. Do your research and get the most of your investment.