Gold is still one of the best investment vehicles in the world. Gold also has the reputation of being one of the safest means of asset at time of global economic or political crisis. This metal has proved its value to a great extent at the time of Global Recession that happened in the year 2009.
Gold is a market for which the demand has never decreased even at the time of global economic crisis. This shows the relevance of buying gold as a safe investment. Another major advantage of investing in gold is that it also has a high resale value. It has a very smaller amount of correlation with other asset classes including equity as well as debt. Thus Gold has the potential of diversifying itself across major portfolios.
The sales of gold are surging steadily across Asian markets, where gold has emerged as an alternative investment avenue to the conventional investment channels like stock market. This trend was quite visible at the time of unexpected currency shocks as well as global turmoil. The demand for gold is exceeding the output that is reported by the gold mining companies. Thus the gold supply always lacks demand, thereby resulting in increasing price of buying gold.
There are many ways in which people and businesses buy gold.
It can be either as ornaments for women which makes major sales in the Asian markets where wearing gold ornaments is regarded as part of their tradition. In European as well as other countries, gold is purchased in the form of bars or coins. The gold bars are commonly known as bullion gold bars. In some countries, bullion gold bars can be easily bought and sold in major banks where as there are also several bullion dealers who also provides the same service.
Another means of investing in gold is by means of buying gold coins. Gold coins are priced and measured according to its corresponding weight that will be followed by a smaller premium that is based on the supply and demand.
Gold Certificates can also be used as a means of investing in Gold. It allows the investors to avoid the risks that are involved in the transfer as well as storage of the physical bullions. It is normally issued by banks. The gold certificates will be allocated with specific numbered bars.
It is always for granted that whenever the inflation looms in a specific nation or across the world, investors can see that the price for buying gold will substantially increase. This means that Rise in gold prices is directly proportional to inflation. Thus gold plays a substantial role in controlling the risk factors by providing investors with maximum returns on their investments.
Liquidity is another major advantage of buying gold as an investment. This means that gold can be very easily converted in to cash. The less risk factor involved in investing in gold also makes it a favourite form of investment among people across the world.