subject: 2 Things You Must Know About Protecting Your Assets [print this page] Gold, the precious yellow metal, continues to dazzle and shine through centuries. People strongly believe in investing in gold either in the form of jewelry or as gold bars and coins. Gold can also be added to your portfolio through commodity trading, Gold ETF and mutual funds.
Here are 2 things you must know about protecting your assets with gold.
1.Reasons Why Gold Continues To Be A Worthwhile Investment Option
Among all commodities, gold is considered to be the most valuable today. Shrewd investors use gold as a buffer to protect themselves against economic, political and social crisis such as inflation, currency failure, stock market crash and sudden war outbreak.
Speculation however plays a major role and fluctuations in the market have an effect on gold prices. Gold behavior and movement is similar to currency trading as it is in the commodity market that this metal is traded.
There is always a mismatch in gold supply and demand which accounts for the constant upward swing in prices. South Africa, which produces the largest amount of gold today, has been unable to get quality output since 1998. This again led to an increase in gold price.
2.Ways In Which You Can Invest In Gold
If you think you cannot afford to buy gold that is constantly rising in price, you can invest in Gold ETF or Gold Exchange Traded Fund. Even though you actually invest in physical gold, you need not store the gold. All you have to do is purchase through a Demat account. For example, one gram of gold is usually represented by one unit of EPF. If you purchase 20 EPF units, it means you get 20 gms of gold. Price of gold purchased thus moves up along with the market and you will benefit from appreciation of fund value.
There are many benefits of investing in gold through this method. You can eliminate the risk of purchasing and storing physical gold. If you have limited funds, you can invest just a small amount and wait for your fund to improve to add to the investment.
Another benefit of choosing Gold ETF is that you can keep track of the gold price and trade any time you wish to. You can also enjoy optimum liquidity which means you can sell your Gold ETF units and get cash if and when you want to.
