Invest in Gold and Silver: Different types of Investments

Indians love their gold, in any form! Whether it is investing in it or buying it in jewellery form. Gold will never go out of style for Indians. Next in line, is silver. Investing in gold or silver is considered good and almost every household has purchased either gold or silver in their lifetimes. The metals are considered auspicious, resilient and pure. This culturally assigned characteristic makes them very popular. The most common way of investing in the precious metals is to buy jewellery which during dire circumstances, can be sold off. To get more value for the metal, people buy gold and silver coins and bars, ETFs, and commodities trading.

Why should you Invest in Gold and Silver?

The prices of gold and silver are not stable. This is why it is a good investment. It protects you against inflation. You can hold on to your silver and gold bars when the prices are high and sell them off when the gold  and silver  rates dip. Unlike, futures investment, there is no contract that you need to finish, even if you are facing a loss on your investment. Even if the equity market is poor, gold and silver might be performing well. Investing in the two metals, helps balance out your investment portfolio.

The most Common investment in Gold and Silver

The common way of investing is buying gold and silver jewellery but it is primarily to adorn you and not get good returns on it. In order to get good returns, people buy gold and silver coins and bars of the highest purity. Since there is a minimal amount of alloy present in the coins and bars, the owners get a good price for their silver and gold at the current market rate.

Different ways of Investing in Gold and Silver

You can buy gold or silver Exchange Traded Funds (ETF) through your trading account. You will be offered this investment in the form of units, which are listed on the Stock Exchange. Similarly, you can buy e-Gold and e-Silver. If you do not wish to start a trading account, then you can invest in the gold fund of funds scheme. Here, your money will be invested in ETFs but you will not need to do anything. It will be like your regular investments without the need to have a demat account. You can also buy gold and silver futures which are bought on a contractual basis. Once your contract is over, you need to settle it irrespective of the prices of the metals. If you wish to create an investment folder with a mix of gold and silver, then you can consider the Milestone Bullion Series 1 investment option.