Invest in GOLD and give a boost to your investment portfolio
Is investing in gold a safe option? If yes, how much do I invest? How do I invest? And many more questions would have crossed your mind the moment you would have thought about investing in gold. Don’t worry we’re here to help you make the correct decision of investment, today we’ll discuss the top 5 ways to invest in gold in 2022.
All types of gold investment fall into two major categories; you can either purchase gold in its physical form i.e. chains, jewelry, plates, bars, etc. or you can purchase gold in the form of a paper by investing in gold saving bonds or exchange-traded funds at an existing gold rate in the UAE.
Investing in gold in its physical form has its own set of pros and cons. The biggest advantage of investing in gold in its physical form is its easy liquidity. However, the downsides of physical gold include safety and high making charges. The price of gold jewelry comprises two elements i.e. the value of gold in the jewelry based on the current gold rate in UAE and secondly the making charges. Making charges sometimes lie between the ranges of 15 to 25% of total jewelry cost. The making charges of gold jewelry cannot be recovered later.
ETF’s or exchange-traded funds offer practical ways of investing in gold. An ETF is very similar to mutual funds or trades on a stock exchange. The portfolio of the fund is fixed in advance and doesn’t vary like other shares or mutual funds.
Investors in the UAE have the option of purchasing and trading gold stocks that are offered by several companies that are actively involved in producing and developing gold deposits at a gold rate in the UAE. The value of gold stocks increases gradually with time offering good returns.
Gold options allow investors to speculate on the gold rate in the UAE. Buying gold options can be challenging as there are high levels of risk involved. Novice investors should not prefer investing in gold options it is only recommended for investors who have an appetite for the risks involved.
To Conclude
There are several reasons why one should buy gold as a financial investment. Buying and trading in gold can safeguard an individual during inflation. Investing in gold can help protect against dropping rates of international currency such as USD. Buying this precious metal at the gold rate in the UAE can offer protection against volatile and unstable market conditions. Gold acts as an insurance policy against instability in the market and enhances your investment portfolio by adding value to your investment portfolio. Gold and its products prove to be reliable investment vehicles before buying always cross-check the gold rate in the UAE. Your investment should be based on how efficiently you’ll be able to manage your investments and expenses.