Investing In Gold
Gold or yellow metal as it is usually called is an excellent investment avenue believed to fetch very good return in short run.
This is only more or less a myth than a reality.
When people notice sudden drop in the price of gold, the ladies flock into the jewelry shops and buy maximum gold possible in the form of coins or ornaments, purely believing the prices would skyrocket within a week’s time. So that, they can sell at higher price and make huge profits but ultimately the prices would only fall further only to repent for the purchased made in haste.
When the price starts rising, the rise is very slow or the rise may not be phenomenal. Besides, the law and order system has paved way for easy chain snatching or robbing the gold ornaments.
Though India has its own gold mine, yet the requirements have to be met only if the same is allowed to be imported, and hence, the price of gold is governed by that prevailing in international markets. Many times, the government tried to bring in measures to curb import and also price hikes, the measures have only been fruitless.
The continued demand for gold despite prohibitive prices also paves way for unscrupulous traders to take the gullible public for a ride by cheating in the form of maintaining incorrect weighing balances which no ordinary person can normally detect through naked eyes. Some unscrupulous traders sell fake gold which too cannot be detected by naked eyes and will reveal its true picture only after wearing for certain times or when washed.
The best investment option is to choose e-gold offered by banks where one may not be physically holding the gold but on paper which can be traded online when there is boom in the market.