THE DULL AND BRIGHT SIDES OF INVESTING IN GOLD

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 The influx of money in gold investments especially in Asian markets recently has grown over the past decades. Under the traditional love for gold there is a fear of investment in gold. Even though gold has always been a volatile commodity and has also been criticised as an investment, it has retained its lustre and stayed true to the buyers. There are pros and cons that define the outcome of every investment. The scope of investing in gold falls into two forms namely,

Physical Gold
Physical gold in forms of Jewellery, gold bars and coins where once purchased the owner has a physical allotment of gold to himself and independent of the performance of the company, they own possession of their allotted gold. The gold redeemed at bullions is allotted and hence a physical form of investment.
Pros:

  • The allotment of physical gold provides sense of insurance to buyer and reduced third party risks
  • The prices are competitive and the lower premiums are available on higher buys.
  • Small amounts of purchases are possible by buyers from as little as 0.1gms of gold to 1gm of silver.
  • When speaking of investments in gold bars purity is high which effects the return directly.

Cons:

  • The need to store and have insurance may come at an added cost.
  • Liquidating jewellery may lose its making value. Returns are dependent on purity of gold and added ornamental decorative stones and items may lose value over time.
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