No matter what, investing in gold will always give the best return. It’s just like real estate, the price of which keeps on increasing over time.
Keeping aside the ups and downs of the COVID-19 epidemic, the gold industry has always flourished in the USA and nearby countries. With such a huge downfall in the share market, the effect on gold was least. So, the current situation clearly proves that there is no risk in investing in gold. If not now, you will surely receive the best return in the future.
Gold investment is a broad category which is further segmented into different gold products. Just like other investment options, you should be informed and make the right decision. You should understand the characteristics of the retail gold investment products and their significant variations before coming to any conclusion.
In this blog, we have discussed the 4 gold products and their characteristics for easy selection.
Gold bullion bars and coins
Not so confirmed about other countries, but investing in Gold Bullion in the USA is one of the most popular choices. You will find US residents are more interested in gold bullion than other gold products. The gold bullion is available in the form of bars and coins. It’s the purest form where the value is determined by the value of its physical gold content. With no extra making charges, gold bullion is a cost-effective option.
Numismatic coins and other collectibles
Termed as coins, numismatic coins are very different from bullion coins. You cannot expect the same return as bullion coins. Also, the value calculation is very different. The numismatic coins are expected to have an additional value beyond the value of the physical metal content. The additional value includes scarcity and design complications.
Gold investment jewellery
Being the best friend of women, gold jewellery plays an important role as an investment product. Along with daily accessories for women, gold jewellery can be a great financial support in case of scarcity. The value of gold jewellery is calculated on purity. Gold plated or similar items will not be worth it for the investment purpose. If the gold jewellery comprises other elements, the amount will be primarily determined by its gold content.
Managed gold products
As the name suggests, the physical possession of the holding will not be in your hand; instead, it will be handled by someone else on your behalf. Here the products are based on vaulted gold, allocated or pool allocated which are stored in professional vaults on your behalf. You will have the outright ownership of gold and exposure to its price but no physical possession. An example of a managed Gold Product is gold saving plans.
Though investing in gold is the safest option, you should not stay relaxed. You should understand your requirements and select the right gold investment product. Also, you should be very careful during the transaction (buy or sell).