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Gold, a yellow shiny metal is a symbol of prosperity and wealth. In India, ancient gold idols in many temples make us realize the significance gold holds in the country. for ages. Gold has also played an important role in the economy of many countries and also in the international monetary system. Gold was circulated as currency before the paper money was introduced. Though, it’s not used as a currency now, it still holds an eternal value. Its indestructible value is what makes a gold a good investment option for preserving wealth.
Gold as a commodity and an asset class holds its significant place in the world of investing. Let’s take a look at the benefits of gold as an investment.
To sum it up, gold can be an important part of a diversified portfolio as it never loses its value. Specifically, gold investment can be considered as protection element for a portfolio against inflation, currency devaluation and other economic uncertainties. So, you must explore all the gold investment options available and invest wisely.
Is gold a good long-term investment option?
Over the long-run, gold may not give you extraordinary return. But, it’s still worthwhile to invest in gold for long-term for many reasons. Here are few of the reasons
Basically, gold investments can be profitable when all other investments fail.
When to invest in gold to make it a profitable investment?
Gold is definitely an attractive investment option owing to its ever-lasting value. Unlike equity investments, which are high risk, high return investments, gold is relatively safer. Hence, gold investments usually fetch moderate returns. Considering gold as a protection against various things, investors can time their entries to gold market in below scenarios to get the maximum possible return.
What are the useful tips for investing in gold?
Buying gold in physical form, which is buying gold jewelleries, ornaments, gold coins and gold bars is a conventional method of investing in gold for the purpose of preserving wealth. However, there are plenty of other advanced forms of gold investment options that are available today. Gold exchange traded funds, e-gold and sovereign gold bond etc. are the current choices available for investors. With the availability of this advanced gold investment options, investors can participate in gold market without even taking the delivery of actual gold. There is no risk of theft and burglary associated with storage of physical gold. Here are a few useful tips for investing in gold:
What is the tax-efficiency of gold investments?
For investors, investment in any form of gold is subjected to income tax under the Income Tax Act, 1961. Physical gold, gold jewelleries, gold coins, gold bars, e-gold and gold exchange traded funds are all subjected to capital gain tax when the profit is made out of selling. Here are the details of tax treatment on physical gold and gold ETF investments.
Tax treatment on Sovereign Gold Bonds