Vietnam Gold Rate Today, Live Market Prices – Golden Chennai
How to invest in Gold?
Since your Indian Rupees is going to fall in value, Gold is the best place to preserve value. The best forms for gold ownership are through minted coins such as one-ounce South African Krugerrands, Canadian Maple Leafs or American Eagles. The recent explosion in Exchange Traded Funds (ETFs) presents an even more interesting way to invest in gold. An ETF is a type of mutual fund that trades on a stock exchange like an ordinary stock. The ETF’s exact portfolio is fixed in advance and does not change. For people who are hesitant to invest in physical gold, but still desire some exposure to the precious metal, Gold Mutual Funds provide a helpful alternative.
For the more sophisticated and experienced investor, Options allow you to speculate in gold prices. But in the options market, you can speculate on price movements in either direction. If you buy a call, you are hoping prices will rise. A call fixes the purchase price so the higher that price goes, the greater the margin between your fixed option price and current market price. When you buy a put, you expect the price to fall. Buying options is risky, and more people lose than win. In fact, about three-fourths of all options bought expire worthless. The options market is complex and requires experience and understanding. To generalize, options possess two key traits such as one bad and one good. The good trait is that they enable an investor to control a large investment with a small and limited amount of money. The bad trait is that options expire within a fixed period of time. Thus for the buyer, time is the enemy because as the expiration date gets closer, an option’s “time value” disappears. Anyone investing in options needs to understand all of the risks before they spend money. The Futures market is far too complex for the vast majority of investors. Even experienced options investors recognize the high risk nature of the futures market. Considering the range of ways to get into the gold market, futures trading is the most complex and, while big fortunes could be made, they can also be lost in an instant.