When it comes to investment, 24 carat gold is traditionally one of the preferred option for many. Moreover, it symbolizes cultural significance. It is one of the oldest investing activity. Being a key passive investment, gold ensures protection in difficult financial scenarios.
Unlike other assets such as equities and other stock options such as debts and hedge funds, gold is seen as one of the most liquid asset. This means that it ensures availability of cash in times of distress. It is traded as commodity like any other commodity in the financial markets.
Despite the allure of gold, investing in it is considered risky by people across India. This is mainly because people are actually unaware about the how to go about it. Unawareness of consumers becomes the gain of traders. Many online website are new and unknow because of which building consumers trust is difficult.
Except some genuine website offering pure products, many out there are generally duping consumers and charging high prices as compared to the prevailing market rate because of which it turns out to be scrupulous activity. In order to provide consumers a guide to go about investing in high quality 24 carat gold, below are some of the key steps which have been enumerated for consumers ease.
Steps To Invest In Gold
Buy Gold Safely
Before getting into purchase of 24 carat gold, one has to be prudent about certain things. One is that, while buying gold at its face value seems easy, one has to be selective in choosing from where one has to purchase it from. One has to be beware of dubious traders and websites. This is important so as to be sure of quality and genuineness. Many private websites offer gold online. However, these websites are not 100 percent genuine and can give fake gold products. Having wits about you is the only way to ensure that a person is buying anything less than the real deal. Looking out for trademarks such as hallmark can be one way to be double sure of the quality.
If a person is unsure of the origins of the gold, or the buyer seems illegitimate, the wise thing would be to move or walk away from the transaction and lookout gold somewhere elsewhere.
Checking For Quality And Price
Checking for pure gold and buying 24 carat gold is something that everyone wants. Buying 24 carat gold which is pure will give the desired payback when required to be sold. Besides, the price of gold is another key factor. One can check the prevailing price of gold online and by searching the market. For instance, at present price of gold in Pune is around Rs 31,000. This price of gold in Pune might vary from the price of 24 carat gold in any other city of Maharashtra.
While patrolling in market, one can find unique gold designs. However, uniqueness and designs does not guarantee their originality and purity.
Choice Between Coins Or Bars?
The second thing is that buyers of 24 carat gold always find themselves faced with two options – to buy coins or bars? This is mainly based on your personal preference of a person and also on the end goal of an investment. To go ahead, bars are one of the widely chosen ways to invest efficiently. These are rectangular pieces of gold. Depending upon requirements, like that of large scale investor, gold might not be of any interest to them. While going out to buy gold bar, these bars are available with the larger sizes usually having less of a premium per ounce of gold. One of the greatest benefit of investing in bars is that it saves a person making charges. Due to their large sizes, these bars involve economies of scale and ensures that a person gets your money’s worth.
On the other hand, coins are generally available in various versions and sizes. The premiums with respect to these coins tend to be modest as compared to the melted gold versions.
Gold coins and bar also make for good gifts and
When To Buy
For any investor, the biggest question is when to invest in gold. The obvious answer is that there is no obvious time to buy. Nobody can measure when is the right time and price to purchase gold. It depends on wide range of factors and monitoring the market is the only way. Keeping an active eye on the stock options and their rise and all, past trends can significantly help an investor.
Once a person buys gold, the next main step is to ensure its safety. Carelessly saving gold at home or in cupboards might lead to loss. Storage in proper vaults and banks will ensure safety reduce the chances of losing the invested amount. Owing gold is not the only thing, one has to be aware in terms of its awareness that it is stored safely.
Gold, being an ultimate safe heaven holds its value when all other assets fall. Thus, it is suggestable to invest in gold wisely. If above strategy is followed, investing in gold will be a cake walk.