In the years past, gold had its place in investment. It has topped compared to other asset classes by giving favourable returns !
Below are some tips for gold investment.
• Early Start. Start invest on gold in early in your life. As Gold act as a strong hedge against inflation. Demand for gold will always more than supply. Demand for gold is not only from individuals but also from central banks. As per world council data central banks and IMF hold more than 17% of mined metal.
• Gold to be 10-20% of your portfolio. In the past years gold prices have risen. Based on your risk taking ability can invest 10-20% of your portfolio in gold. Gold can be in any form (e.g Gold Coins, Gold bars, Jewellery etc. )
• Physical vs. Electronic gold. Don’t buy physical gold. As you might have to pay more with making charges and wastage. Also you have to be careful in safeguarding the physical gold which leads to bank locker charges.
It is advisable to buy electronically. Which overcomes the above worries. Also you can buy minimum of 1 gram. Electronic gold is easier ,secure and tax-efficient way compared to physical gold.
• Systematic Investment Plan. e-gold and Gold mutual funds allow investors to make periodic investments in Gold. Can invest minimum 1 gram gold monthly. Being a disciplined investor investing fixed amount each month you can create a substantial amount over time.