Every financial company is screaming these days for investment. When it comes to investment, it becomes a big question for every individual what is the right method of investing. The upsurge in fraud cases makes people insecure about their money because of the highly volatile market. Many financial advisors say go for the physical asset, which is more reliable and secure for a longer investment. However, many people cannot afford to invest in real estate because of insufficient capital issues. Therefore, metals play a major role in securing money, especially gold. In this article, we will shed some light on what are the common methods you should consider for investing in gold. 

3 Common Methods For Investing In Gold

1. Physical Gold

Physical gold has been regarded as important from ancient times. Ancestors tried to invest in more gold because of the high liquidity of the loan which can be used in an emergency time. Basically, physical gold gives you ownership control that can be considered for the investment. In this era, many financial companies like Manipal Fintech offer gold loan services which have benefited a lot of people. The major benefits are low interest rates and can be easily accessed. If you know more about Manipal Fintech Gold Loan Services visit their website or you can call them on 1800 309 8440.

Although it is one of the most secure choices for investing in gold, there are some charges, and theft loss is always there. The major drawback is having storage issues with gold. Additionally, RBI guidelines also implemented that they cannot store gold over 1 kg at home. 

2. Gold Coins

Gold coins are also considered in the physical asset that typically starts from 1 to 50 gm. These are particularly purchased for gold investments only. As we know, gold pricing has skyrocketed which results in a high per-gram value of your gold. The value of gold also depends upon the purity since you can purchase gold in 24K, on the other hand, jewelry is made of 22K.

Despite gold coins being pure gold to dilute and get high value, storage and safety is still a big problem for gold coins. 

3. Gold ETFs

As we know, gold is not an investment, it is an emotion for many Indian households. Traditionally, people invest in gold jewelry which is why selling the jewelry has never been an easy task. To solve the issue, gold ETFs were introduced. These are basically considered as the stock exchange and it is digital to access. Therefore, gold ETFs solve the problem of storing the gold in the lockers and the pricing of gold ETFs is transparent.  

Although it solves the problem of safety and security, you need to create a demat account for gold ETFs. That means accessibility to gold ETFs is limited because of lacking the knowledge of required procedures and formalities. Gold ETFs come into the RBI guidelines which is why long-term investment can result in taxation which majorly people try to avoid. 

4. Other Alternative Methods

In the gold industry, there are other methods to invest in gold such as gold mutual funds, gold mining stocks, and gold futures and options. In all of these demat accounts are required for the particular investment or you can opt for other options like investment through SIPs that help to make investment a bit easy. A lot of options sometimes make an individual confused about what is the right method we can invest in.

How to Choose the Right Methods?

Choosing the right is difficult for everyone, therefore many people still lack the right method and right investment. Here we are breaking down the problem so that you can understand better, for eg investor type that includes the gold investment type. Many people like to buy gold coins and bars and many are believed to have stock exchanges. Therefore, we categorize the people into beginners, long-term savers, active traders,s and more categories. We believe that if you are a beginner then you should go for digital gold, gold mutual funds. Moving to the next long-term savers can invest in sovereign gold bonds and then, active traders can invest in gold ETFs. The next category is that the traditional buyer can look out for physical gold coins and bars. 

Final Thoughts

Gold is one of the versatile assets from ancient times. If you look at the journey of gold, over the last 10 years gold prices have risen up from Rs 26,340 to Rs 98,290 per 10 grams which makes gold a valuable investment for better financial needs. Today, financial institutions are actively participating in providing the best financial move in easy ways. Financial companies and lenders are investing in customer services where they can provide the best service through reliable platforms. In short, there are many ways that you can invest in gold which we have already mentioned above, but it simply depends upon your needs and budget. 

If you are looking for gold as a long-term investment then it is the right choice you can make with just smaller capital.