Knowledge   Center

Outlook in Gold Investment

Precious metals-based investment instruments performed better as compared to other asset classes in the last few years. The investment-led demand has been one of the key drivers of precious metals' prices in this recessionary phase in many developed countries.

Analysts say the outlook for precious metals is still attractive in the medium term due to uncertainty in the global economies, and more expectations of monetary easing across the world. Investors can add precious metals to their portfolios cautiously by buying in small quantities at regular intervals.

Traditionally, gold has been an international currency and investors across the world buy gold as an investment. The demand for gold has risen over the last few years. It is mainly 'safe haven' demand from large global investors and hedge funds who aim at safeguarding their investments amidst global economic uncertainty.

High liquidity and soft monetary policies of central banks across the world, to boost economic activity, further channeled money to gold-based instruments. This resulted in higher prices of gold.

Investing in physical gold has been an excellent choice in the first decade of the 21st century. No matter in which currency you were holding (physical) gold, the value of gold rose four to five times. And the fundamentals are so strong that the gold outlook in 2012 has never been better.

In fact, experts in the gold industry point to gold as being more than an investment: it’s a (alternative) currency and a means to preserve your wealth. That statement is particularly true going forward in 2012, where currencies are debased all over the world. Holding money becomes less attractive.

Gold Investment has gained momentum and has proved its metal in the tides of fluctuating market. When all other assets has shown some sorrow faces, gold has remained tested with time and has helped in incurring some profit out against dollar inflation. It’s always to invest in parts and in diverse direction and gold investment offers is one such variety.

Here are some reasons why one should invest in gold.

  • Gold commands high demand in the market among jewelry industry and other industries involving its use.
  • Gold is class apart from other kind of assets and therefore is an excellent option for diverse portfolio.
  • Gold is plays the ideal role of hedge against uncertain high end risk investment. Against volatile financial asset in the time of inflation, gold acts as compensation and source of profit.
  • Gold investment is highly liquid in nature due its trading as a share. You can anytime buy or sell it without any problem quickly.
  • There is an amount of safety involved in gold trading and the quality of gold is maintained in the lines of international protocols and standards.
  • Security wise Gold is all safe and sound since all the transaction involved, takes place in electronic mode and there is no risk involved in any circumstance.
  • Gold ETF comes under mutual fund and comes under taxation scrutiny as per debt mutual fund and one does not need to pay wealth tax.
  • Gold ETF are listed in stock exchange market same as other stock and is traded similarly. It does not involve any physical delivery of gold and therefore is good for investors to get in gold bullion market.

Therefore, investment in gold is kind of less risky portfolio and can balance the probable lose from other investments. Presently gold investment is going through a very good phase and has a long way to go and price is always towards progressive growth. Gold investment is a wise thing to do following the current trends in market