Investing in Gold - A Proposal

The glitter of gold is everlasting. It was there and it is still one of the most desired objects on earth. Gold has remained a popular investment. In the early times, people use to bury gold bars or gold ornaments by keeping them in an urn or a container and exhume it when needed.


In today's modern world a common person, either keeps it in bank lockers or invest it. Gold is the only precious commodity that is easily accessible as one can simply buy it from a gold dealer or a jewellery shop. Furthermore, gold commodities exchanges have made it a better option to enjoy the benefits derived from the profits earned on buying and selling it.


Investors usually purchase gold as a hedge to mitigate any probable economical, political turmoil or predicament and capitalise on its price movement, as it is quite lucrative. Usually such crises lead to a plunge in stock markets, war, inflation, unemployment and social turbulence.


Another reason of buying gold is that once the gold market sees an upside and all the world's biggest gold commodity exchanges start showing a bull run, investors rush to buy gold which in the end results in a gold price hike, affecting the international gold market.

This usually results in financial gains for the investors in a particular time, small investors focus on day-today trading. However, the big guns of the gold market invest on a long-term basis.

Therefore, investors eyeing to invest in gold unswervingly have three alternatives. Firstly, they can buy gold as physical asset. Secondly, they can buy an Exchange Trade Futures (ETF) that facsimile the true worth of gold. Thirdly, go for trading in the futures and options commodities market.


Investing straight in commodities, such as gold or oil, is a difficult task for investors than investing in stocks and bonds; especially it tends to be quite intricate for a lay-man who is just concerned with the immediate result or gains without any complexities.

The primary reason for a low turnout in gold investment is that stocks and bonds are easily transferable. It is simple to get to the average common investor.

Furthermore, to understand the system of futures and options market whether it is related to the stocks and bonds system or gold commodity exchanges are quite complicated and inhibits the investor to go for gold investment through gold commodity exchanges. It is not the case with gold only; investment in any commodity is conventionally more convoluted due to its complex nature. You cannot just buy gold and stay back, for that matter one has to track the market dynamics and future scenarios.


It is never been advisable to put all your savings in gold, though, a percentage of your savings of investments should be endowed in order to remain on the safe side. While your liquid funds would be readily available in case of any emergency. However, if you just want to earn profits buy gold and sell it as the price rises.