Gold has a diverse history in India and is often considered a reliable and trusted investment.
However, now-a-days it is not restricted to just physical golds. Many alternatives are available of owning gold today.
DIFFERENT WAYS TO INVEST IN GOLD -
Gold bullion
Buying gold in bars or coins is the most common method. You'll enjoy the gratification of seeing it and handling it, but if you possess a significant amount, ownership also comes with the danger of security.
The requirement to protect and ensure actual gold is one of the biggest downsides. It is important to stay up to date on the prices of gold, so you can decide the right time to buy it.
Futures on gold
Although actual delivery is not what drives speculators, gold futures are a fantastic opportunity to trade on the price of gold growing (or dropping). You could even accept physical delivery of gold.
The ability to employ such high levels of leverage when investing in gold through futures is by far its largest benefit. In other words, for a very little investment, you may hold a substantial number of gold futures. You might quickly make a large sum of money if gold futures move in the direction you anticipate.
The futures market is often just for experienced investors, and you'll need a broker who supports futures trading—not all of the big brokers do.
ETFs that own gold
An excellent option to owning actual gold is to purchase an exchange-traded fund (ETF) that tracks the commodity if you don't want to deal with the trouble of doing so or the frantic speed and margin needs of the futures market.
iShares Gold Trust (IAU), SPDR Gold Shares (GLD), and Aberdeen Standard Physical Gold Shares ETF are three of the biggest ETFs (SGOL).
The ease with which an ETF may be converted into cash at market value is another major advantage over holding bullion.
Similar to selling a stock, you can trade the fund on any day the market is open at the going rate. As a result, gold ETFs are easier to trade and have greater liquidity than real gold.
Mining stocks
Investing in the mining companies that create the gold is another method to benefit from increased prices for the metal.
Given that they may earn from gold in two different methods, this solution may be the greatest one for investors. First off, the miner's profits increase together with the price of gold. Additionally, the miner can gradually increase production, creating a double-whammy effect.
ETFs that own mining stocks
Don't want to learn too much about specific gold companies? Then investing in an ETF could be quite wise. You may gain exposure to the largest gold miners on the market by using gold miner ETFs. You won't be significantly harmed by the underperformance of any one miner because these funds are well dispersed across the industry.
Bottom line, there are multiple ways to invest in Gold and grow your wealth.
Choose the best option for you and get started with your investment journey.
