Many expert investors have the opinion that it is very important to have some part of your portfolio invested in gold mutual funds fidelity. Investing in gold is considered to be a hedging strategy against the fluctuations in the stock market. Investing in gold is considered a safer bet especially in such economic crisis which is happening in recent times. In historic sense, gold started being referred to as a standard among international countries after the Brenton Woods conference in 1946.
Like any other commodity, the price of this metal depends on the demand and supply. In recent times, the demand of gold has been on the rise due to increase demand in emerging countries like China and India. In these countries, the rapidly increasing middle class has ignited the demand of this precious metal in the form of jewelry as well as direct investment of gold. On the other hand, the supply of gold has been decreasing all over the world.
This is the reason why the price of this metal has been rising continuously over the last few years. Since 2001, the gold bull run started and it has not stopped yet. The demand is ever increasing and everyone wants to invest in gold because this run is expected to continue in future as well. Another reason why people want to invest in this precious metal is that gold prices are generally immune to the fluctuations in the stock market.
There are various methods in which an investor can invest in gold. Most people think that jewelry is the best way of owning gold but the fact remains that this is not the best way to invest in gold. The other way to invest is to buy coins or bullion. This is a better way to invest in gold but the downside is that you need to take care of the physical gold in a locker or some place safe. The newest and the best way to start investing in gold is to invest in gold ETFs. These funds mimic the value of gold in international market and can be bought and sold like a normal stock therefore it is a liquid form of investment.
Another way to invest in this metal is to invest in stocks of gold mining companies. The prices of these stocks will increase with increase in process of this metal. Whenever these companies strike gold in any of the mines, the share prices will rise dramatically. Most of these companies have a big margin therefore, it is not a bad idea at all to invest in these stocks. Investing in gold has become pretty common with investors today and it should find a place in everybody’s portfolio.