Investors are always keen to invest in gold as their preferred choice. As we have stepped in 2024 and the avenues for gold investments have diversified to cater different gold investments goals. We have different options for gold purchase like physical assets, shares of mutual funds and ETFs (exchange traded funds) etc. that deals with gold or they can trade gold as commodity in future and options. For Gold investment 2024, we have following options.
1. Investing in Gold Bullion
Gold Bullion, the actual Yellow metal in the form of coin or bars can be purchased from precious metal dealers or from bank or brokerage as it is a easy accessible metal as compared to other commodities.
We have different size of bullion bars ranging from one fourth of an ounce to a 400 ounce. But these days the coins are good choice of the new coming investors. The purity of the bullions and coins can be trusted as they are certified from banks.
Gold jewelry is another option for investing in gold. In case of jewelry, it is also combined with some precious stones. During making of jewelry, gold is mixed with other metals like copper to give shapes to ornaments. So investing in gold jewelry you will not get pure gold i.e. 24 karat. Actually You pay for 22 karat or 18 karat etc. With the time Jewelry adds sentimental values in family. Actually investing in jewelry is not the best option because the retail price of ornaments are quite high than its meltdown value.
Most of the insurance companies cover gold by some policies so it is an advantage when stolen or lost.
2. Gold Investment in 2024 – Gold Funds
Investment in gold mutual funds is a good option for investors who have their Demat account. Mutual funds have good flexibility of systematic investments plan(SIP) and withdrawal plans (SWP).
Investing in gold funds is feasible than owing physical gold which is hassles free of cost of storage and insurance etc. As you know that investors are interested in more liquid and a low cost entry in this market
In the year 2004, the oldest ETF, SPDR Gold Share (GLD) is oldest one are traded on The New York Stock Exchange could be bought or sold any time during at any trading day. A share of ETF represents one tenth of an ounce of gold. For an example if gold is trading around $2000 an ounce, the gold ETF will trade near $200 per share. This gives the investors a direct exposure to the metal’s price moves.
Looking into the market trends and our research that gold rise and fall faster that the price of gold itself. There are multiple factors which affect the price of gold in the market like political factor or environmental concerns etc.
3. Investment in Gold Future Options
Investors can also choose Options on gold future or option, who are more experienced and don’t want or risk a lot of capital. These type of contracts represents the right, not the obligation to buy or sell physical gold at a specific price for certain time. The option is in your hands and can be used when the prices are suitable up or down giving good profits to your investments.
In the Chicago Mercantile Exchange in U.S., put and call options for gold futures can be exercised through futures brokers. Investors can trade in their standard brokerage account that has received approval for options trading while some traders buy and sell gold futures contracts which are traded on CME under symbol GC to speculate on short term moves higher for lower in gold.
4. Investment in Gold Mining Stocks
You can also invest in gold mining stocks if you can’t get gold directly. However you should keep in mind that gold stocks prices don’t necessarily move in concert with bullion price, because it depends the success of the mining companies. However, the investors can generate good profits in accordance of their capital deployed. You may incur losses in case of the mining company does not grow as you don’t have physical possession of gold.
Conclusion
According to our market analysis, ETFs are the best way for investment in gold. If you are more aware of protection in the events of system wise crisis, you may opt in owing physical gold.