How To Buy Gold

The times, they don’t look so promising! Forget the rupee, even the dollar is changing to the extent that the Indian Government exchanged its dollar wealth for its worth in gold. Nothing seems secure anymore. The only thing in the money market that has remained relatively immune to major fluctuations is gold, which is perhaps the soundest investment that someone can make at any time. For ages, people have been investing in gold, which seems to have retained its value – its price may increase drastically but it will never decrease in the same way. However, even to make this sound investment, one needs to keep certain things in mind, especially since it is not to be taken lightly and one should exercise extreme caution. There are people out there waiting to just fool you into spending more money for less gold than you should be getting, so one must tread very cautiously. Here’s what to do when buying gold as an investment.

 

 

Here are some things that you should keep in mind when you set off to buy gold as an investment:

 

Homework, Please! 

It is best to do your homework when it comes to investing in gold. This is one investment that you cannot take lightly, since its price, though fluctuating, is relatively high as compared to others. Also, you must know much more about gold than just its price – you must know the recent trends in gold prices, i.e, whether they are rising or falling.

What Kind To Buy? 

You should also have a clear picture in your mind as to what kind of gold investment you world be making – since buying jewelry is not too sound an investment, the other options available are to buy gold coins, gold bars (known also as biscuits) or even in terms Gold Exchange Traded Funds (GETF). These funds track the price of gold and are traded on the major stock exchanges like London, Paris, Zurich, New York and Mumbai. Since April 2007, the Unit Trust of India Mutual Funds listed the GETF on the National Stock Exchange of India. Every unit of UTI Gold Exchange Traded Fund approximately represents one gram of pure gold. By all means, gold coins are the best way to invest, especially when the investment is not too big. They are more affordable, easy to transport, protect and even sell. They may even hold value for coin collectors depending upon their age. GETF will take away the pain of even having to store that gold, but it is essential to find an investment firm that has a good reputation.

 

Look For Repute 

Since it will be one of the biggest investments you must have made in your life, you should be very careful about who you deal with. It is best for you to go to a local dealer, because they are most trustworthy and also will help you save on the shipping and other charges that online gold buying will entail. There is also the comfort of conveniently sitting down to discuss the whole issue, rather than having to discuss this over the phone with a person you have hardly seen. If you are not convinced about the local dealers’ credibility, you should do a thorough research on the best online dealers so that you do not make error in judgment.

 

There is enough gold for an investor to invest in, but you must be very sure of what is most affordable for you. If you are not making a very huge investment, you may be apprehensive even about gold coins, but you must know that in terms of coins, there is a size and price that suits everyone’s pocket. There may be gold coins that are a small as 1/10 of a gram. Many such offers will suit your budget.