7 Gold Investments That Gave 22% Returns In 1-Year

Gold has seen a very bullish trend in the last few years. In fact, we have seen gold rally dramatically, as investors have sought a hedge against other risky investments. Here are 7 gold investments, which have seen a stupendous rally in the last 1-year. Remember, to read the bottom of the article, where we have described in detail, why you should invest in Gold ETFs, in place of gold jewellery and gold bars.

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Why Gold ETFs are better than gold jewellery and gold bars?

1) Making charges

Gold jewellery may attract a making charge of 10 to 20 per cent, which increases the cost of gold. You cannot recover that cost when you sell. On the other hand, mark-up charges by banks on gold bars could be 10 to 20 per cent, while Gold ETFs attract a brokerage of 0.5 per cent or less.

2) Selling

On selecting gold jewellery, you cannot recover the making charges. On the other hand banks do not buy your gold bars and coins, while selling a gold ETF would cost only 0.50 per cent, as brokerage or even less to sell.

3) Theft

Physical gold can easily be stolen, while Gold ETFs cannot. Apart from this, you may need to polish the gold, hire a bank locker etc. In short, there are maintenance charges for gold, while no such hassles in the case of Gold Exchange Traded Funds.

All in all, gold exchange traded funds are far attractive than other investments, which makes buying them an attractive proposition. However, one cannot guarantee returns in any form of investments and those risks will always remain.

About the author

Sunil Fernandes has spent 25 years covering business and finance with leading investment magazines and newspapers. He has also covered commodities like gold, crude oil etc. His passion remains stocks and equity research.