Best ways to invest in Gold
The utility of gold is not just limited to being an ornament, it is an excellent form of a financial investment as well. Investing a part of one’s earning in gold has been the traditional way of creating wealth since times immemorial. Gold has a rich history which is interwoven in different cultures and traditions. You can either invest in the physical form of gold i.e. gold chains, bars, coins, bullions, jewellery, etc. or invest in gold in form of paper i.e. Gold ETFs, Gold Stocks, Gold funds, at an existing gold price in UAE.
Gold provides a hedge against inflation and protects an individual and their loved ones against phases of financial stability. If you are stuck in the confusion of finding the correct choice of gold investment in the UAE, we’ll guide you through the best ways to invest your earnings in gold in the UAE.
Investing in gold has its pros and cons especially if you choose physical gold. The primary concerns associated with physical gold is ensuring safety, high purchase and making costs, out of fashion designs. However, the best part of investing in the physical form of gold is its high liquidity. Liquidity is the measure of ease by which a given commodity can be sold for cash. In the case of physical gold, the liquidity is quite high which means that you can easily sell it for cash.
An important factor to be kept into consideration while investing in any form of physical gold is that while selling gold for cash, you won’t be able to retrieve the making charges of the gold. The gold sold second hand is purchased by traders at the price of gold in UAE excluding the making charges.
ETFs or exchange-traded funds are a relatively newer concept in the field of gold investment and provides a practical method of investing in gold to yield returns. Exchange-traded funds are similar to shares traded on the stock exchange. The portfolio of the fund is pre-decided and does not vary that much like other stocks and shares.
Gold futures are basically a standardized exchange-traded contracts. In these contracts, the buyer agrees to receive a delivery from a seller for a particular amount of gold. Purchasing gold futures on the exchange can be a bit of challenging task as there is a degree of risk involved in the investment when compared to other forms of gold investments. Gold options and futures allow an investor to speculate on the current price of gold in UAE. Although investing in gold futures can be tricky but the profit in return is worth the hassle.
Gold stocks are another reliable option to invest your earnings. Investors in the UAE have the option to purchase and trade in stocks offered by companies involved in the extraction and production of gold at the current gold rate in UAE. The value of good stocks tends to increase with time, thus giving good profits in return.
The physical form of gold can be purchased offline or online at the current gold rate in UAE. With modernizing technology one can purchase gold digitally offered by several digital wallet companies.
Gold can be an excellent investment tool, provided you are aware of all the post consequences of investing in gold. Before investing your hard-earned money in any investment plan, product or program it is very important to do a bit of research and analysis.
“The choice of investment should be focused on the suitability of a plan for an individual”. This statement means that one should check the various factors that might affect the investment and returns associated with it and then make the decision of investing your earnings into an investment plan or product.