Friday, January 13, 2012

Gold- An Alternative investment

traditionally gold has been a saving and investment vehicle. But as financial times have changed, has gold as a investment lost its sheen. Modern day financial advice is to use as a inflation hedge. But the year 2011 fold saw saw the one of the highest gains in commodities. Anyone who have invested and stayed invested would have seen a windfall.
Kommensenze advice would be buy small incremental grams of physical gold ie. in gold billions or coins. Gold bars in smaller denomination in 10 or 20 grams is preferable as the have smaller premiums and faster selling opportunities.
Gold ETF are also another vehicle that is available for online investors. Typically the fund house would have the gold ETFs at per unit of one gram trading in the local currency. Investors can buy them from the primary source of the fund house or secondary market of the exchange house.
Both option have pros and cons that individual investor has to take in account before he decides. Ideally common investor have around 5 to 10% in their portfolio.

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