Gold investment is a long-term investment scheme involving low risks. People willing to invest in gold have a natural advantage because the demand for gold is much more than its actual supply. The price of gold is generally in a continual rise. However, investors should not invest all their funds in one kind of gold investment.
The gold industry is huge and has many facets, and a savvy investor can exploit this. Money can be invested directly in gold mines, for example, which can be more lucrative than investing in physical gold.
Benefits of gold investment
- Gold is a popular form of saving
- Gold is indestructible
- Gold is a major requirement in the jewelry industry
- The malleability and ductility of gold make it very useful
- Gold can be transported easily
- Gold is the universal standard against which the value of any object can be assessed
- It retains as well as appreciates in value
Gold investors prefer to buy gold in its cheapest forms such as krugerrands, sovereigns and bars. Gold bars are the cheapest while gold sovereigns, because of their smaller size, are worth paying an extra premium for.
Last Updated on : 5th July 2016