Everyone knows about gold and also that investing in gold is a profitable asset in the future. The history of gold is not good but one thing has always remained the same in gold that is the value of gold is increasing and people’s love for gold is increasing because people make jewellery for show-off and wealth.
Gold has been a very safe and profitable investment in the past and present. The future is very good for gold as the central banks of the world (RBI, Federal Reserve, People’s Bank of China, Bank of England, European Central Bank) are buying gold in their treasuries.
Gold is a very precious metal and its availability is very limited. Its demand is also increasing a lot. If the demand is high and the supply is not enough then the price automatically increases. Therefore Gold is a profitable asset in the future.
Uses of Gold
- Gold is a highly conductive and corrosion-resistant metal, so we use it in the manufacture of semiconductors. Semiconductors are the future of the world of electronics and the modern world as well.
- Space Probes
- Hedge the fund.
- Recession
- Jewelery
Investing in Gold is the Asset of the Future
There are many ways to invest in gold and make money in the future.
1. Physical Gold is Asset in the Future.
We buy gold biscuits, coins and jewellery. This is the physical form of gold. Gold jewellery is my first choice, because if you want to live a happy life then you should buy gold and gift it to your loved one.
Gold jewellery gives you status in the society and if you want, you can sell it or mortgage it to get money as an emergency fund. It is a very good asset.
2. Sovereign Gold Bond
Sovereign Gold Bonds are issued by the Reserve Bank of India on behalf of the Government of India. It is the safest investment in gold, which offers a guaranteed interest of 2.50% per annum.
We get this gold in digital form for a period of 8 years and the withdrawal option is for 5 years. This investment is a tax-free investment after the entire period.
3. Gold ETFs (Exchange Traded Funds)
We buy gold through ETFs in digital form in our demat account. Market prices are directly affected every day. We can start investing in gold with a very small amount and trade it like stocks. It is safer than physical gold.
4. Gold Mutual Fund
Many mutual fund houses are providing gold investment services. But one thing is that they are investing our money in gold ETFs. The main difference between gold ETFs and gold mutual funds is their investment strategy and return potential.
Some other factors also work in investing in gold which are mentioned below.
1. Other Charges
When we buy physical gold jewellery and coins, jewellery making charges are applicable. But other forms of gold investments do not attract such charges.
2. Taxes
When we invest in any kind of gold like physical gold or gold funds and gold mutual funds then GST and other taxes are applicable. Only Sovereign Gold Bond is exempt from tax.
3. Risk
My friends, risks are everywhere, somewhere very high and somewhere very low, but risks are everywhere. We can manage our risks. Risks don’t matter if it gives us happiness. Physical gold gives us happiness but it is more risky than other investments.
4. Investment Return
Return is very important in any investment. The best gold returns come from sovereign gold bonds, followed by gold ETFs, then gold mutual funds and finally physical gold.
Physical gold is a very bad investment but it gives peace and happiness in your life.
