Smartest investment and life plans in UAE

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Top Five Ways to Invest in Gold in 2021

By PolicyBazaar

Invest in GOLD and give a boost to your investment portfolio

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Gold is one of the most selling precious metals of all time. Apart from being a great fashion accessory gold is a unique tool to counter phases of financial instability. Back in time, our ancestors purchased gold as a financial investment; even today gold is quite popular as a financial investment. People usually tend to invest their savings in gold because of its easy liquidity. Gold is very easy to liquidate asset which means that you can sell it very fast and easily receive cash in return. When compared to other financial investments like mutual funds, bonds, gold is quite flexible and easy to liquidate.

Is investing in gold a safe option? If yes, how much do I invest? How do I invest? And many more questions would have crossed your mind the moment you would have thought about investing in gold. Don’t worry we’re here to help you make the correct decision of investment, today we’ll discuss the top 5 ways to invest in gold in 2021.

All types of gold investment fall into two major categories; you can either purchase gold in its physical form i.e. chains, jewelry, plates, bars, etc. or you can purchase gold in the form of a paper by investing in gold saving bonds or exchange-traded funds at an existing gold rate in the UAE.

Physical Gold

Investing in gold in its physical form has its own set of pros and cons. The biggest advantage of investing in gold in its physical form is its easy liquidity. However, the downsides of physical gold include safety and high making charges. The price of gold jewelry comprises two elements i.e. the value of gold in the jewelry based on the current gold rate in UAE and secondly the making charges. Making charges sometimes lie between the ranges of 15 to 25% of total jewelry cost. The making charges of gold jewelry cannot be recovered later.

Gold-Exchange Traded Funds (ETF)

ETF’s or exchange-traded funds offer practical ways of investing in gold. An ETF is very similar to mutual funds or trades on a stock exchange. The portfolio of the fund is fixed in advance and doesn’t vary like other shares or mutual funds.

Gold Stocks

Investors in the UAE have the option of purchasing and trading gold stocks that are offered by several companies that are actively involved in producing and developing gold deposits at a gold rate in the UAE. The value of gold stocks increases gradually with time offering good returns.

Gold Options and Futures

Gold options allow investors to speculate on the gold rate in the UAE. Buying gold options can be challenging as there are high levels of risk involved. Novice investors should not prefer investing in gold options it is only recommended for investors who have an appetite for the risks involved.

To Conclude

There are several reasons why one should buy gold as a financial investment. Buying and trading in gold can safeguard an individual during inflation. Investing in gold can help protect against dropping rates of international currency such as USD. Buying this precious metal at the gold rate in the UAE can offer protection against volatile and unstable market conditions. Gold acts as an insurance policy against instability in the market and enhances your investment portfolio by adding value to your investment portfolio. Gold and its products prove to be reliable investment vehicles before buying always cross-check the gold rate in the UAE. Your investment should be based on how efficiently you’ll be able to manage your investments and expenses.