The Indian Gold Market
For hundreds of years, gold has been a stabilizing force in the Indian economy. The recent return to less risky investment vehicles has prompted an upswing in the total value of gold on the global market. Investment in Indian gold shares has three major advantages for NRI investors:
1. High Return/Low Risk
Gold has proven itself to be a great preserver of value over the long term. If the global economy continues to be unstable, gold will be in even higher demand raising the total value. In 2009 alone, gold rose 15.5% on the global market.
India’s gold market is changing. Individual investors are showing more interest in buying gold backed investments. Investment companies are responding to this increased demand by offering special incentives for purchasing gold options.
2. The Gold Guinea
The Indian Multi-Commodity Exchange (MCX) has introduced a new futures stock based upon the 8 gm gold guinea. This is hoped to revitalize the retail market and encourage a new breed of direct gold buying and selling in India. Many individual Indian citizens have become interested in buying physical gold coins like the new guinea. New delivery channels for the gold coins have been developed, and business is expected to move briskly over the next year.
3. Spot Trading
Organizations like RiddiSiddhi Bullions Ltd are working on Spot trading platforms that will facilitate buying and selling gold in smaller denominations. Amounts as small as 1g or 2g can be easily purchased using their system. The effect of the quick buy-sell mechanisms associated with Spot trading platforms is twofold:
Individual Indian families are more likely to invest in the smaller quantities of gold available through the system.
Investors can utilize the platform to hedge their risks.
Spot trading and other innovations open the market to new groups of local Indian gold buyers. As the Indian gold market experiences more liquidity, external investors and non resident Indians can easily cash into one of the variety of gold-backed investment products to hit the Indian marketplace
How to Invest in Gold Online
Learn how to invest in gold online and earn a return on your money. You can easily invest in gold online by buying gold stocks, buying gold funds, buying goldmine stocks, or buying gold coins, bullion or bars directly. Gold is an excellent long term investment. Do not expect to turn a huge profit overnight with most gold investments, but you can make quick money on gold stocks, or goldmine stocks.
GOLD STOCKS - Invest in gold stocks or ETF's (exchange traded funds) after you have thoroughly researched them.
Open a stock market trading account online and then practice trading stocks with the tools offered by the website.
Once you are confident in your trading, look up and research stocks related to gold, precious metals and mining. You will find plenty of stocks to research and buy or sell.
If your stock broker offers any training or help, you should definitely take it until you are comfortable buying and trading stocks yourself.
If you want more information on investing please look in the Resources section below.
GOLDMINES - Invest in goldmines it is many times a better investment than gold directly.
The best way to invest in goldmines is by buying goldmine or other precious metal stocks.
Always research every stock you purchase thoroughly before investing.
You can find information on what goldmine stocks may be ready to rise by using a stock advice website. Stock traders that find stocks ready to rise usually like to share the information because the more people that buy the stock, the more chance that it will move in the direction needed.
Knowing how to invest in gold online will help you keep your nest egg safe from volatile markets.
SOLID GOLD - Buy gold directly in the solid form. You can buy gold coins, gold bullion and gold bars.
There is nothing better than holding the gold coins directly in your hands.
There are many companies that can help you invest directly in gold. It is your choice whether you keep possession of the gold directly or not.
Always research every investment thoroughly before you invest your money. Make sure that you are dealing with a legitimate company. If you are suspecting in anyway, move on to another company. Trust your instincts.
Gold is an excellent investment in a volatile market but it is not normally a quick return on your investment. If you are looking for a quick return invest in gold stocks or goldmine stocks.