How to invest in Gold? A Comprehensive Guide

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How to invest in Gold? A Comprehensive Guide

Investing in Gold is a traditional yet the most reliable investment option to diversify your portfolio and safeguard against economic uncertainties. Whether you are a seasoned investor or just starting out gold investment, understanding the different ways of gold investment and adopting the right strategies for your financial goals is crucial. Hence, AIIONGOLD brings you a comprehensive guide, in which you will get to know the “ins and outs” of gold investment and some actionable tips on getting started to leverage your financial success.


Why should one invest in Gold?

1. Flight to safety asset

During Inflation, fiat currencies tend to lose their purchasing power over time. But since gold has intrinsic value and is limited in supply, it retains its purchasing power making it a better option than paper currencies. Moreover, Gold prices tend to rise when inflation increases. Hence, if you invest in  Gold, you can turn inflation into the opportunity to earn profits on your gold investment.


2. Portfolio Diversification

Unlike stocks and bonds, gold prices move independently. Hence, adding gold to your investment portfolio provides a buffer against market volatility and helps mitigate the risk by diversifying your asset allocation.


3. Highly liquid assets

Like stocks or bonds, Gold ETFs (Exchange-traded funds), Digital Gold, and Gold futures are highly liquid assets. That means you can easily sell or buy these assets in emergencies. 


How to invest in Gold?

Now, that we are aware of the benefits of investing in the gold market, let us delve into the types of Gold  Investments we can make:


1. Physical Gold

Gold Bullion

Investors can purchase physical gold in the form of bullion bars or coins. Bullion bars and coins of 24k are available in various sizes and purities at AIIONGOLD franchisees across India, the Philippines, Vietnam, and Hong Kong offering flexibility for investors with different preferences.


 Gold Jewelry

Another reliable way of investing in gold is Gold jewelry. You can purchase beautiful earrings, necklaces, bracelets, and rings with BIS Hallmark at any AIIONGOLD franchise.


2. Digital Gold

Digital Gold is a form of investment that allows investors to buy and own gold in electronic or digital form, without the need for physical ownership of the metal. Investing in Digital gold offers convenience and accessibility as investors can easily buy and sell gold electronically on AIION GOLD  investment best app, where you can choose different investment plans according to your budget and preferences, monitor your holdings, and track gold prices in real time. Digital Gold investments are highly liquid and are backed by secure storage facilities and robust cybersecurity measures to protect investors’ holdings against theft, fraud, or unauthorized access.


3. Gold Exchange-Traded Funds (ETF’s) 

Gold ETS’s are investment funds that track the price of gold. They are designed to provide investors with exposure to the performance of gold without the need for physical ownership of gold metal.  The value of gold ETF is closely tied to the price of gold. If the price of gold falls or rises, the value of Gold  ETF fluctuates accordingly. Gold ETF’s are highly liquid assets and have lower expense ratios compared to managing mutual funds or physical gold, making it a cost-effective way for investors to gain exposure to the gold market. Since Gold ETF’s have a low correlation with stocks and bonds, it reduces the overall portfolio volatility and mitigates the risk of Inflation or other economic uncertainties.


4. Gold Mining Stocks

Gold Mining Stocks are shares of the companies that are involved in the exploration, development, production, and sale of gold. Investing in gold mining stocks provides investors with exposure to the gold industry and helps them to gain profits from changes in the price of gold. Gold Mining stocks offer higher returns than Gold ETF’s, diversify the investor’s portfolio, and sometimes Gold mining companies may distribute dividends to their shareholders. However, Gold Mining stocks are subjected to higher operational, business, and geographical risks. Hence, it requires careful research and consideration of the risks involved.