Trading in Gold is a profitable investment ever & is very useful to diversify your portfolio. Investment in Gold is the best way to ensure the wealth preservation. While investing in Gold, buying gold coins & bars is the better option and the best time to invest in gold is when hike in the price takes place & gets stabled.
With the uncertainty existing in the trading market, here are some Gold picks shared which should be kept in mind before investing.
Gold Mutual Funds:
Investor if unsure about investing in the physical gold, gold mutual fund is the best alternative for you. These funds carry the portfolio of Gold stock companies which have production in gold mining.
When price of the gold hikes, these gold companies makes good amount of profits; thereby provides the capital for long term as the stocks of the company have the capability to defeat the price of gold by some margin.
Buying Physical Gold:
If buying physical gold then easiest thing is to buy the jewellery, which you can easily find on Singapore online shops. The gold coins or bar is also a better option if buying physical gold and also it’s recommended to have Gold tips before buying so that you will be aware of when to purchase it. For the security purpose, you can keep your gold in banks or at your home also.
Gold Miner Stocks:
This is an alternative way to invest in gold, but one thing notable here is that share price of gold miner stock will not follow price of gold exactly. For example- if price of the gold rise up to 10 %, the share price will be at 20% and if price get down below 10%, the share price will get lower down below 10%.
Thus, investing in gold miner stock is risky but on the other hand, risk always brings good returns; therefore investing in gold can be a better option for you if you’ve capability for facing the risk factor.
Gold can be the profitable investment if you understand the gold investment strategy thoroughly with the gold trading recommendations before investing. With this, to be protected from risk factor, you need to maintain the well diversified portfolio.