Don't buy gold, Invest in it!

NEW DELHI (Scrap Monster) :  People around the world have diverse reasons to buy gold- wedding, religious occasions and  festivities to mention a few. The recent plunge in gold prices turned out to be a boon for large number of gold buyers. With prices gradually recuperating from the floor, what investment options are available to pick from?

Jewellery does not qualify as an investment bet, taking into account the fact that the customer has to pay extra money at the time of purchase in the form of making charges, taxes etc., On the other hand the customer is paid only the plain gold rate when he sells it. Gold coins through bank are also charged hefty premiums. Bullion bars on the contrary are not affordable to normal investor.

It is in this context that gold ETF’s are rated as a good investment option. A myriad of gold based Exchange Traded Funds are available in the market, which makes it possible to invest in the bullion without actually taking physical delivery. The factors that have contributed to ETFs becoming the hot favorite of investors are many. First and foremost is the convenience at which the investor can buy into and exit. The dividend option in ETFs has also proved enticing to the investor. Liquidity of ETFs is the highest, as they can be converted to cash any time. Above all it eliminates the high risk of owning physical gold too.

Futures and options, Warrants and gold certificates are other investment options.