Whatever your goals are, saving to meet those goals is important, but regular investing is critical. The best investment plan is built on the best thinking, the most efficient structures and the best investment strategies. The first step towards a secure financial future is to clarify your investment goals. Once you have recognized your goals, it is important to set a plan to ensure you save while investing wisely to make sure you can reach them.
The next step is to make the most of your savings by investing them. The type of assets you invest in will depend on your financial requirements and objectives. But rising market volatility, global economic uncertainty and geopolitical unrest have increased interest in gold as both a short and long-term investment. In fact, during 2009, world investment in gold is estimated to have more than doubled from 2008 level as it has always been a much trusted investment which offers a good financial return to the investors.
Gold has always had a unique position in the investment universe, as a physical asset that is accumulated rather than consumed, it is differentiated from stocks and bonds (which are claims on future cash flows), other commodities (which are consumed and paper money (which is highly liquid and can be easily destroyed). These traits are among the reasons why gold may the best investment Plan for some and perform differently than traditional investments.
There are several options for investors interested in using gold as part of a short- or long-term investment strategy. Exchange traded gold funds offer investors an innovative way to access this asset class. The investment objective of Gold ETF’s is to provide returns that, before expenses, closely correspond to the returns provided by domestic physical gold price. Due to unique structure of ETF’s, all types of investors- individuals, institutional, corporate can invest in gold ETF’s.
The reasons for investment in gold have remained much the same over history:
- Long-term store of value- It is portable, divisible, indestructible, relatively scarce, easily recognizable and acceptable as a form of payment.
- Asset diversifier- Gold protects the total portfolio against fluctuations in the value of any one asset class.
- Asset of last resort- Gold is an asset which does not depend upon any government’s promise to repay
- Highly liquid- Gold is among the most liquid of the world’s assets and can be readily sold 24-hours a day in one or more markets around the world.
Investment in gold can be done in two ways either in physical form (gold coins and bars through bank and jewelry) or in non physical form (gold ETF’s, Gold fund of funds etc through brokers or authorized entity.)
Investor demand for gold has been increasing amid global economic and political uncertainty. There are several options for investors interested in using gold as part of a short- or long-term investment strategy. Exchange traded products backed by physical gold offer investors an innovative way to access the price of physical gold.
Gold is thus traditionally considered a safe and one of the best investment options, especially during a time of recession with high risks such as inflation, exchange rates depreciating and bank collapsing.