Throughout history, precious metals have proven to be a safe and profitable investment. Is the world going through an economic crisis? Is there political instability in the country? Gold, as time shows, only becomes more expensive in the long run.
We do not live in a world of magic and cannot use the Philosopher’s Stone. Therefore, gold is a limited resource.
If you are an investor who is considering the possibility of investment in gold in India, but you are still undecided whether physical gold is better or financial gold, i.e. the one that can be purchased through, you have ended up in the right place!
In this article we will show you the advantages and disadvantages of the two forms of investing and help you choose the best one for you.
Before you begin, you need to know what exactly is meant by ETFs.
Gold ETFs and ETCs
An alternative to investment in physical gold is represented by the so-called “financial gold “, that is the set of financial products whose price is linked to that of gold, but which does not provide for the real possession of gold.
Among the many instruments available that fall within the field of so-called financial gold, the most famous are undoubtedly ETFs. An ETF is a particular passively managed investment fund, the sole purpose of which is to faithfully replicate the performance of an underlying product.
The advantages of ETC over physical gold
Of course, there are also advantages to buying ETFs rather than physical gold. For example, ETFs do not force us to have to hold gold or pay an institution to hold it, and in general they have very low operating costs.
Is it profitable to invest in gold – the key advantages of investing
Stable price growth. Fluctuations in value can be seen in the context of the season. In the long term, the price rises.
Resistant to destruction. Rust, corrosion, mechanical shock are not terrible. If you buy a kilogram of precious metal today, then in 10 or 100 years the weight will be the same. In addition, this breed does not fade.
Ease of storage. Small ingots do not require dozens of containment rules. Keeping them at home is not worth it – it’s much safer in the bank.
Liquidity. Gold metal can be quickly exchanged for money by selling to banks, investment funds or individuals.
The versatility of investment in gold in India, according to investors. The metal is recognized in every country. In a way, it performs the functions of world money, but in a somewhat limited form. Paying directly is problematic and risky.
You can get tremendous benefits from your gold investment if you choose the right strategy. Remember that gold is a suitable instrument for long-term investment, and it doesn’t make much sense to invest in it for less than 5 years.
On the other hand, you can make money on gold through short-term transactions on the stock exchange. For a trader, gold futures are another instrument, on the fluctuations of which you can make money.
Buying bullion from a bank is easy, but very unprofitable, since you have to pay a lot of taxes. If you do not want to learn how to trade, then the best investment method would be to go for best gold investment scheme in India.