Everything you need to know About Gold Stocks
Gold is considered a haven for financial investors during phases of financial turmoil. Whether you choose to invest in the physical form of gold by purchasing gold plates, chains, bars, jewellery based on the current gold rate in UAE, or in its non-physical form it is always a wise decision to invest your savings in gold. Gold is one of the most selling precious metals of all time. Its value, longevity kept together with practical purposes has ensured there is always a market for it. Our ancestors purchased gold as they considered it to be a form of investment and a carrier of good luck and fortune. Even today gold provides cushioning against phases of financial instability and forms a crucial part of your financial portfolio.
UAE has significant gold reserves and gold is openly traded in the market based on the current gold rate in UAE, to make sure that there is something available for every budget. Gold stocks are a new way of investing your earnings in gold without the hassle of keeping it in physical form with you. It offers good returns and is getting quite popular these days. Today in this article we’ll discuss everything you need to know about gold stocks.
What are Gold Stocks?
Gold stocks are similar to shares in stock exchange which enables an individual to ear profit, primarily in the form of a dividend amount. Gold stocks are shares that a person buys in a company involved in gold production or trading. It can either be a gold mining company, gold exchange-traded funds (ETFs) or gold mutual funds. Buying gold stocks in a company means that you own a small part of that company and you are entitled to receive profit that comes as a result of your investment in stocks.
Gold stocks are different from gold exchange-traded funds (ETFs) in many ways. Gold ETFs are units that represent gold in its physical form with each unit equivalent to 1 gram of gold based on gold rate in UAE. Gold stocks, on the other hand, are shares in gold producing/mining companies.
Gold is a naturally occurring resource that is diminishing with time which makes it even more difficult and challenging to find and mine this precious metal. Although investing in gold mining companies possesses high levels of risk but the rewards are quite tempting as well. While investing in gold stocks it is very important to check and verify the track record and debt status of the company you choose to invest in.
Things to Remember before Investing in Gold Stocks
Gold is an expensive commodity, and if you don’t play your cards right you can end up suffering huge financial losses. You should always remember these few things before investing your earnings in gold stocks.
Choosing the right mode of investment is the most important decision. You should do proper research and analyze the pros and cons associated with all the available options like gold ETFs, mining companies or gold mutual funds.
Always consult a financial advisor before you make your decision of investing in gold stocks. Availing services from a financial advisor may cost you initially but it will help you to seek best returns.
Keep yourself updated about daily happenings ensuring you are aware of your decision and its impacts on your financial portfolio.
The economy of the UAE is booming with various options and methods available to invest your earnings. Although market conditions are quite unpredictable gold stocks have performed well. Investing in gold is not only limited to ornamental value, but gold also forms an important part of your financial portfolio providing financial stability by safeguarding your loved ones.