Are you considering investing in gold? Experts say you may not get the expected return on your investment if you only invest in physical gold.
To maximize your returns, consider the following ways to invest in gold and profit from rising prices. Many people buy jewelry as an investment in gold, but experts advise against this approach.
To maximize your profits, consider investing in other gold schemes available in the current market. Typically, physical gold investments involve buying gold jewelry, coins, or bars. Jewelry is usually 22-carat gold, while coins and bars are generally 24-carat.
However, liquidating and converting these investments into cash can take time and effort. When exchanging jewelry, depreciation and additional charges may be applied, reducing the value of your investment.
Another option to profit from gold is to take out gold loans. However, you may only receive up to 80% of the gold’s market value on the day of the loan.
To fully profit from gold, consider investing in Sovereign Gold Bonds issued by the Central Government. These bonds allow you to invest in the value of gold in the form of a bond issued by banks based on the current market price.
With Sovereign Gold Bonds, you’ll be paid the market price of 24-carat gold and receive interest on your investment.
Gold ETF funds are also a viable investment option. These funds, similar to mutual funds, allow you to invest in Gold exchange-traded funds whose returns are linked to the market rate of gold.
Additionally, you can invest in gold through commodity exchanges using the futures market. The commodity exchange determines prices in the futures market, and you can make profits by trading futures through options based on market fluctuations.