Best gold investment return picks for 2021 : One of the major reasons for making any financial investment is that you consider it as a backup if in case you need it in future and gold is one of the most of the easy to liquidate the hard asset. In case you happen to be in need to use your gold to make your ends meet, you just have to sell it to the buyer you prefer. There are always buyers ready to buy the gold. But keep in mind the return rate is not exactly what you expect, instead, it is opposite especially in the case of physical gold, you get less than what you invest. Like we mentioned above, gold has a lot of significance in Indian culture but we are not talking of emotions here, in fact, financial investment is not a matter of heart but Mind and thus, let us take a look at all the practical reason that make gold a suitable investment medium over other options.

That said, gold trounced the S&P 500 in the 10-year period from November 2002 to October 2012, with a total price appreciation of 441.5%, or 18.4% annually. The S&P 500, on the other hand, appreciated by 58% over this period. The point here is that gold is not always a good investment. The best time to invest in almost any asset is when there is negative sentiment and the asset is inexpensive, providing substantial upside potential when it returns to favor, as indicated above.

Alf Field has been called the “world’s best gold analyst.” He is well known for his many spot-on predictions in the precious metals market and these are some of his determinations regarding the future price of gold: “In the 1970’s bull market, gold increased from a low of $35 to a peak of $850, a massive 24.3 times the low price. If the current bull market was to be of the same order, then one could project an ultimate peak of $6,221(gold’s low price in the current cycle of $256 x 24.3). Field outlined in an article back in August 2003 his conviction, which he referred to again in his concluding November 2008 article on the subject of Elliott Wave and the gold price, “that the world, and especially the USA, was heading for a major financial crisis that would be so powerful that it would overwhelm all other factors [which] I referred to as the ‘Big Kahuna’ crisis. I anticipated that the Big Kahuna would give rise to the risk of a systemic meltdown, which would result in the authorities ‘throwing money at problems’, bailing out all the banks and large corporations that got into trouble.

Goldbugs have often encouraged investors to own the precious metal as part of a diversified long term investment portfolio. Gold is seen as a hedge against inflation and a store of value through thick and through thin. Holding gold, however, comes with unique costs and risks, and the data show that historically gold has disappointed on several of its purported virtues. In order to fully understand the purpose of gold, one must look back to the start of the gold market. While gold’s history began in 2000 B.C, when the ancient Egyptians started forming jewelry, it wasn’t until 560 B.C. that gold started to act as a currency. At that time, merchants wanted to create a standardized and easily transferable form of money that would simplify trade. The creation of a gold coin stamped with a seal seemed to be the answer, as gold jewelry was already widely accepted and recognized throughout various corners of the earth. Find even more info at investing in gold.

Deflation is defined as a period in which prices decrease, when business activity slows and the economy is burdened by excessive debt, which has not been seen globally since the Great Depression of the 1930s (although a small degree of deflation occurred following the 2008 financial crisis in some parts of the world).. During the Depression, the relative purchasing power of gold soared while other prices dropped sharply. This is because people chose to hoard cash, and the safest place to hold cash was in gold and gold coin at the time.

Simply put, gold futures are contracts to buy and sell gold at a certain point in time. Each contract represents a certain amount of gold, and depending on the specifications can pay out in either a dollar amount or the physical gold. Gold futures can be very large, making this a strategy best suited to investors with the capital to purchase high-valued contracts. There are also options on gold futures to consider. This provides investors the option to purchase a futures contract for a preset price at a certain point in time. Options can help buyers leverage their initial investment, though they are required to pay the underlying value of the gold to fully own the option. Both gold futures and options are considered to be volatile — making them more difficult to break into and manage when compared to other forms of gold investments.