The gold bonds are better than buying gold | Tips for Selection of Gold Bonds
The gold ornaments are the sign of richness once upon a time and now the gold has become the investorâ€™s choice due to recession. Now the rate of gold had crossed Rs.19000.
- The number of People buying the gold is same as in the past and did not change. Gold is seen as the mineral which do not vary due to inflation and so people are getting attracted towards it.
- When ever there is a down fall in the market value, investors are showing interest towards gold than investing in the equities. And so when ever, there is a downfall in the market value, the rate if the gold had been increasing.
Even though investing on gold is lossless, it is a step backward in the regular income. There is a chance of dividend when we invest in the mutual funds and shares. We also get income regularly if we invest in bonds and fixed deposits in the form interest. It is possible to get rent by investing the actual properties but it wonâ€™t be a good profit when we sell the gold ornaments or coins. There is a way for the people who want invest in the gold and get the income without any loss. We know about gold exchange funds and we can invest the amount based on the gold we have. We should also give some amount to the liquid funds.
- Innovation is required for the investors and this helps a lot to overcome the fear of loss. And so we should include gold and liquid funds in our list.
- The fear of loss in the liquid funs is less and we can also get the dividend in this. This will satisfy us. The interest rates in the present are very less and so the rates may increase in the future. The RBI is also working towards increasing the interest rates. The value of the bonds which are bought at less interest rate will reduce when the interest rates are increased. So waiting for a long time is not good.
- Those who want to invest in the bonds directly should select the bonds in which credit rating is more. Even though interest rates are low, the fear of loss is less. It is better to invest in the liquid funds, bonds and gold for those people who want income without loss and without any fear.