Investing Guide

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Ways to invest in Gold

Ways to invest in Gold

Gold is one of the safest investments and one of the best ways of diversifying risk. Gold has the property of hedging against currency’s downfall throughout the world. If we talk about long-term & risk-free investment, then Gold is right there on the top amongst all precious metals.

Superiority of gold is accepted all across the world. Investing in gold has grown drastically in past few years. Investing in Gold is now cheaper and easier than ever before. The price of gold is seemingly on a constant rise. If you are looking to invest in gold, going with the right and reputable Gold dealer is of paramount importance. One of the most reputed Gold dealers in India is Jindal Bullion Limited. You will see the following advantages in dealing with Jindal Bullion Limited over the other bullion dealers:

1. When dealing in Bullion Bars:

Gold Bullion Bars are the best form of investing. It is a bulk quantity of Gold. The gold in bullion bars must be above 99.5% in purity.

Generally when people are dealing with regular dealers they face the following disadvantages:

a. The other dealers make it very difficult to liquidate Bullion Bars whereas at Jindal Bullion Limited we make it very simple and hassle free.

b. With other dealers you have to physically carry the gold that you want to sell or buy. In today’s unsafe scenario, this is not a viable option. With Jindal Bullion Limited, you have the facility of saving your Gold in virtual vault, and, you can also buy, sell, or transfer that gold from the vault online without actually needing to carry the Gold anywhere.

2. Bullion Coins

Bullion Coins are mostly preferred by small investors. One of the most important factors for the investors to consider is a consistency in the price of the Gold coin with the international gold price for that day.

Following are the disadvantages which are faced by the customers when not dealing with an authorized dealer like Jindal Bullion Limited:

a. Jindal Bullion Limited gives clear and authentic information about all their coins, whether the weightage of the coin is 1g or 100g. You might not get that same authentication with the dealers that are not authorized or as reputed.

b. With big and reputed dealers like Jindal Bullion Limited, even if you buy the smallest quantity of Gold, you will get the wholesale pricing as if you are buying it in bulk. Not many dealers can boast of this wonderful facility.

3. Exchange Traded Funds (ETF)

An ETF (Exchange Traded Funds) is a type of investment fund which is traded on stock exchanges. ETF holds assets like stocks, commodities, bonds etc. The ETFs trading value is calculated based on the total asset value of the stocks that it represents. When dealing with ETFs, customers might face following issues:

a. Additional fee and capital gain taxes apply which is not the case when you invest in Gold with Jindal Bullion Limited. Our prices reflect the total price. No hidden charges and no hidden fees!!

b. Some ETFs might not be backed by the amount of Gold that they claim, but with Jindal Bullion Limited, we do not sell what we do not have. If we sell any amount of Gold to you, we have it in our repository.

4. E-Gold (Electronic Gold)

E-Gold is an electronic mode of investment in gold which allows conversion to physical gold at any time. Investors can invest &trade in gold online saving them the holding and storage cost.

When the investors are not dealing with authorized or reputed dealers they may face following problems:

a. Transactions are non-reversible with most of these dealers. But if you are dealing with Jindal Bullion Limited, then you do not have to worry about anything because we do not deal with e-gold and since you are dealing with real bullion, you can cancel your transaction at any time, by clicking the “sell” option and selling the gold that you no longer want. You will get the current prevailing market price for your transaction.

b. Phishing, Hacking and other risks are generally associated with online services, but not in case of Jindal Bullion Limited. We have 128 bit encryption security on our website which is not susceptible to these issues easily hence providing you the peace of mind that your investment is safe and sound.

5. Gold Accumulation Plan (GAP)

Gold Accumulated Plan (GAP) is a type of saving plan in which an individual deposits a specific amount of money every month which is used to buy gold to be kept in the account. While some Gold dealers may try to entice you with schemes like Gold Accumulation Plan, they fail to tell you the following::

a. Slow & steady investment style could result in missed opportunities of investing in Gold when the price is low because you have to wait for a period of time before you can accumulate enough cash to actually convert it to Gold. With investments in Gold with companies like Jindal Bullion Limited, the major advantage is that you start gaining on your investment as soon as you buy or sell or even book your Gold by paying just 5% down payment on your Gold at the live market prices provided by the company on their website. This ways you do not have to wait before cashing in on your investment.

b. During the waiting period to accumulate enough cash, if the price of Gold rises, then the value of your cash would diminish. Hence, you will not be able to buy the same amount of Gold 6 months down the line if the price of Gold goes up in those 6 months as compared to today. Again with companies like Jindal Bullion Limited there is a huge advantage that since you are directly investing in Gold rather than in Cash, there is no hassle of conversion from Cash to Gold and also if in the meanwhile the price of Gold goes up even the next day after you buy or book your gold, then you stand to gain on your investment right away and since it is not cash, it will never lose its value.

6. Gold Mining Stocks

Some dealers and traders of Gold might suggest investing in Gold Mining Stocks instead of the physical Gold as when the times are good, the shares of the mines might jump up in value even 3 or 4 times greater than the actual value of Gold. When the gold price goes up, producer of gold also gets the benefit through them. But investing in these kinds of stocks might have following repercussions for the investors:

a. Management and operational factors could result in decoupling (movement in opposite direction) from gold price. You can eliminate this risk by dealing with companies like Jindal Bullion Limited who always encourage you to invest in real and physical Gold to protect you from these variable and unpredictable changes in the stock market.

b. Risk of nationalization. Mines can be taken over by the Government at any time and the mines can thus be nationalized. But when you invest in physical Gold with reputed companies like Jindal Bullion Limited, you do not have to worry about your investment in the mines in the form of shares going to Government and yield zero benefit for you.

DISCLAIMER: The views expressed in this blog are those of the author and may not reflect those of Jindal Bullion Limited. The author has made every effort to ensure accuracy of information provided; however, neither Jindal Bullion Limited nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Jindal Bullion Limited and the author of this article do not accept culpability for losses and/or damages arising from the use of this publication