Gold Traded Mutual Funds
Gold is one of the most precious commodities in the world. During these times, when inflation is skyrocketing and the economy is not doing as well as it should, one must consider investing in gold to be one of the safer areas of investment. Gold traded mutual funds offer the benefit of investing in gold and at the same time eliminates the disadvantage of holding physical gold.
"Gold is a wonderful thing! Whoever possesses it is lord of all he wants. By means of gold one can even get souls into Paradise." - Columbus, letter from Jamaica, 1503
Gold is one of the good investment avenues open for many reasons.
Why one should invest in gold?
The uncertainty in world markets, particularly the US economy and the weakening of US Dollar against world currencies coupled with phenomenal rise in Oil prices, cascading price rise and inflationary trends - all these point to the need for strong world currency and that is the yellow metal- "THE GOLD". The Bullion has its own Standard. Besides, Gold is said to have sentimental values particularly in the Asian countries. Over time, Gold has proved to be an excellent preserver of wealth. Gold has maintained its value in terms of real purchasing power in the very long run in all the countries especially in the US, Britain, France, Germany and Japan. Despite price fluctuations, gold has consistently retained its historic purchasing power parity with other commodities and intermediate products.
Gold traded mutual funds are the answer for people who want to invest in gold without the real difficulties of gold holding. For example, to buy gold for investment, one has to spend time to verify its weight, purity (particularly in third world countries) quality & other aspects. After all these, the problem of safe- keeping hovers over one’s head. Now Gold Traded Mutual Funds offer all the benefits of investment in gold without any of the above physical difficulties. Gold’s liquidity, acceptability and portability are particularly important in times of need. In essence, all these benefits are retained & rendered by Gold Traded Mutual Funds.
How these Gold Traded Mutual Funds operate?
They accept funds from public and buy 100% pure assayed gold. They issue unit certificate to the public for each gram of gold invested by them. For example, if one wants to buy 100 gram of gold, one has to buy 100 units from the Mutual Fund. The price of each unit depends on the price of gold ruling on any given day. This investment can be kept in paper or in a demat account. These units can be surrendered to the fund and gold bars can be obtained in return (if required).
How the Fund repays in gold bars?
All the gold bought by the Fund is deposited with a custodian- usually a reputed banker- for safe keeping in their safe vaults. Once the fund units are surrendered, the Fund authorizes the banker/ custodian to release the gold bars. So this helps the investor to get back gold or retain the deposit in gold (investor’s choice). Since these gold units are traded in the market, anybody can sell these units easily in the market at the price prevailing on that day. One need not search for a buyer as in the case of selling physical gold.
Gold Traded Mutual Fund offers all the benefits of investment in gold without its physical difficulties. The major advantages of these funds are:
Gold is one of the good investment avenues open for many reasons.
Why one should invest in gold?
The uncertainty in world markets, particularly the US economy and the weakening of US Dollar against world currencies coupled with phenomenal rise in Oil prices, cascading price rise and inflationary trends - all these point to the need for strong world currency and that is the yellow metal- "THE GOLD". The Bullion has its own Standard. Besides, Gold is said to have sentimental values particularly in the Asian countries. Over time, Gold has proved to be an excellent preserver of wealth. Gold has maintained its value in terms of real purchasing power in the very long run in all the countries especially in the US, Britain, France, Germany and Japan. Despite price fluctuations, gold has consistently retained its historic purchasing power parity with other commodities and intermediate products.
Gold traded mutual funds are the answer for people who want to invest in gold without the real difficulties of gold holding. For example, to buy gold for investment, one has to spend time to verify its weight, purity (particularly in third world countries) quality & other aspects. After all these, the problem of safe- keeping hovers over one’s head. Now Gold Traded Mutual Funds offer all the benefits of investment in gold without any of the above physical difficulties. Gold’s liquidity, acceptability and portability are particularly important in times of need. In essence, all these benefits are retained & rendered by Gold Traded Mutual Funds.
How these Gold Traded Mutual Funds operate?
They accept funds from public and buy 100% pure assayed gold. They issue unit certificate to the public for each gram of gold invested by them. For example, if one wants to buy 100 gram of gold, one has to buy 100 units from the Mutual Fund. The price of each unit depends on the price of gold ruling on any given day. This investment can be kept in paper or in a demat account. These units can be surrendered to the fund and gold bars can be obtained in return (if required).
How the Fund repays in gold bars?
All the gold bought by the Fund is deposited with a custodian- usually a reputed banker- for safe keeping in their safe vaults. Once the fund units are surrendered, the Fund authorizes the banker/ custodian to release the gold bars. So this helps the investor to get back gold or retain the deposit in gold (investor’s choice). Since these gold units are traded in the market, anybody can sell these units easily in the market at the price prevailing on that day. One need not search for a buyer as in the case of selling physical gold.
Gold Traded Mutual Fund offers all the benefits of investment in gold without its physical difficulties. The major advantages of these funds are:
- Safety
- Liquidity
- Convertibility to physical gold
|
Use the feedback form below to submit your comments.
Use the form below to email this article to your friends.
- Low Risk Investment -- That Out Performs Stocks & Mutual Funds With Lower Risk!
- Stop Wasting Your Wealth in Mutual Funds: Separately Managed Accounts--The Smart Alternative
- Investing in Mutual Funds
- How do Mutual Funds work
- The Mutual Fund Summary Prospectus: Almost – Here at Last
- Matching Mutual Funds To Your Investing Needs
- Mutual Fund Advice: Mutual Fund Recommendations, Resources and Radio
- Mutual Fund Alternatives – Get Better Growth With Less Risk!
- Mutual Fund Investing for the Layman
- Mutual Funds: Investing for the Long-Term
- Constructing an All-Weather Mutual Fund Portfolio
- Investing in Mutual Funds for Youngsters
- Best No Load Mutual Funds: Mutual Fund Fees and Mutual Fund Expenses
- Mutual Funds: Returns Are Not All
- Why Mutual Funds Are A Better Option for Retail Investors
- How to Know the Best Mutual Funds to Invest With
- Best Mutual Funds: Which Mutual Funds Are the Best for You?
- Mutual Fund Investing: ETFs and Index Funds versus Actively Managed Mutual Funds
- Top Mutual Funds: Building No Load Mutual Fund Portfolios
- Best No Load Mutual Funds: Mutual Fund Research Matters!
- How do Mutual Funds Work
- Mutual Funds Ratings
- Mutual Fund Investment Advice
- How to Invest in Mutual Funds
- Advantages and Disadvantages of Mutual Funds
- What are the Different Types of Mutual Funds