Before proceeding further let us answer a basic question in our mind. Why to invest in gold? Should I invest in gold? Is gold a good investment option?
It is your hard earned money. So you need to answer these questions before investing in gold. Why do people invest in Gold? What are all the benefits of investing in gold?
There are 2 primary reasons why you need to invest in gold.
The above 2 points could have given some answers to your question "Is buying gold a good investment?"
Return on gold investment:
Is it profitable to invest in gold?
This investment proved remarkable from 2006 to 2011.During that time span Gold has given average return of 29% per annum which was any day better than other investment options.
However, the long term average return on gold investment is less than 10% p.a.
As one can say technically or ironically but history always repeats itself. Therefore, we may once again observe the similar less than 10% appreciation pattern in gold prices in near future.
Still, if you want to invest in Gold and cannot resist yourself from the temptation then these are few types of gold investment:
Is it right time to invest in gold?
Many times I have faced questions similar to "When to invest in gold?" or "Should I invest in gold now?" There is no right or wrong time to invest in gold. You need to invest in gold for long term (5+yrs). It is better to stagger your investments over a period of time to average out the cost of purchase.
How to start investing in Gold online?
You can start investing in gold online either by investing in gold ETF or by investing in gold funds. Gold funds can also be bought online just like investing in other mutual funds online.