Is Gold an Ideal Investment?

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With the fluctuating economy, dollar becomes a risky investment and gold becomes an ideal option for investors. There are different gold investments which can include direct ownership, allocated and unallocated gold accounts, gold mutual funds, gold exchange traded funds, digital gold currency, gold accumulation plans and gold bullion pensions.

The value of gold has been recognized since ancient times and until now, its value has not diminished. Since the government does not set any gold standard, its value cannot be controlled. Procurement of physical gold has lower costs and the refineries where gold bars can be acquired are usually established and trusted. Besides, bullion bars contain gold up to 99.5%.

Bullion coins, on the other hand, are another form of gold investing where investors start to collect gold coins which can serve as a valuable investment once they pile up. Although collecting may take time, it is a safe form of investment since there is a lower risk for the coins to be fake or stolen. However, investors must take note of the type of coin they will be buying since the gold contained by the coins varies.

In case an investor does not want to keep the gold himself, an allocated gold account can be opened to ensure the security of physical gold. A bank will be liable in keeping the gold bars or gold coins invested by the customer. The bank cannot defer or accrue any amounts on gold, so the investor only has to pay insurance costs and other expenses of the allocated gold account.

Contrary to allocated gold accounts, the unallocated gold account allows the bank to do whatever it wants to the gold of the investor. For instance, it can sell the gold in case it encounters financial crisis. As a result of this, there are no storage and insurance costs when one chooses an unallocated gold account.

Another gold investment opportunity is the gold exchange traded fund which works like the stock exchange. It is a kind of mutual fund that is backed up by gold and tracks gold prices. Although this type of investment has capital gain taxes, it is especially convenient for gold traders.

Other forms of gold investment include digital gold currency, gold accumulation plans, jewellery investments and gold bullion pensions.

These forms of gold investments open more opportunities for revenue. The unstable economy, inflation rates, and the declining value of stocks and dollar investments make gold a strategic choice for investment.

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