Gold – As an investment


Gold – As an investment

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Out of all the precious metals, gold is one of the most popular savings products. From housewives to businessmen, almost everyone at some point in their lives invests in gold. The reason behind it is that its scarcity makes it extremely valuable.

What most of us fail to see is that saving in gold in the form of jewelry is not a smart investment. Even though we do get a valuable necklace out of it, we end up losing way more than we realize.

Firstly, to make gold good enough to make jewelry, it has to be mixed with other metals like copper. At times, goldsmiths and jewellers make misuse this fact and cheat their customers by adding other metals more than required. Customers on the other hand, who purchase the gold jewellery with the incentive of investment, end up paying much more than it’s worth.

Secondly, a lot of us overlook the breakup of gold jewellery price. It is something like this;

Price of Gold Jewelry = Cost of Gold+Making Charges+Wastage Charges+Cost of Stones, if any + VAT

Apart from ‘cost of stone’ and ‘making charges’, the above calculation includes a scary number of ‘wastage charges’. These wastage charges are quite ridiculous and are another example of the jeweler’s dishonesty. This is because it is not possible to waste gold. The unused portion can always be melted and used again. Hence gold is not ‘wasted’. Even though these charges vary from shop to shop, they can be as high as 20% which in reality is the jewelers’ margin!

But is there another way we can invest in gold without buying gold jewelry?

The answer to this is Gold ETF (exchange-traded-funds)! Or in simple words, online gold. Gold ETF is traded on the stock exchanges and eliminates the unwanted costs that come along with the purchase of gold jewelry and ornaments (that is, wastage and making charges). However if you buy physical gold in the form of bars, then you will not have to pay for these extra charges. But here comes another problem. When you buy physical gold, its price varies from jeweler to jeweler. Hence there is a possibility of being overcharged. But with Gold ETFs, prices are as per international standards. In addition to that, gold ETF is also very convenient and affordable as it is even available in small quantities, i.e in 1 gram.

So if you are interested in gold for investment, then Gold ETF is the preferred option for you! You can easily purchase it from

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