Ways of Investing:
The route to gold marks a different way of parking the capital such as jewellery, direct investment, Gold Stocks, etc. However, the question is that which way is to be considered the most effective one? The investment in gold in the form of jewellery gives an investor direct possession of gold; however, for this purpose, the jewellery making charges along with relative taxes substantially absorb any potential gains from the price appreciation. The direct investment in gold also involves taking a position in the future contracts, which allows investors to take advantage of the gold appreciation; however, future contracts carry leverage, which could magnify the extent of profit and loss, and give investors a bumpy ride. On the other hand, investing in gold stocks offer some advantages as it allows an investor to take benefits of the movement in the gold price; and apart from that, it enables an investor to hold the equity rights in a gold mining company.
Performance of Gold Stocks
Kalkine presents a Research Report on GOLD stocks to cater to the requirements for diversification during market turmoil. The stock(s) identified and provided in the report follows an industry/ peer comparison analysis, relative valuation analysis or other relevant evaluation. The report touches upon an insight into gold operations, peer comparisons and various financial metrics and valuation ratios, such as EV/ EBITDA and Price/ Cash Flows, to provide clients with a holistic picture of gold stocks that might have a growth potential.
This Precious Yellow Metal-based report may help in taking informed decisions by looking at demand and supply trends, new developments, macro and micro-events, industry-wide and company-wide scenarios, and stock evaluation based on fundamental and technical aspects.
During market turbulence, gold assets or stocks are likely to increase their value when other assets are struggling. They are benefitted from the consumption demand, low interest rates, weakening US Dollar, geopolitical instability, among others.
It provides the ability to hedge systematic and non-systematic risks.
Unlike investment in the physical metal (gold bars and coins), holding a gold stock can also offer a dividend to shareholders.
There are multiple ways to invest in gold, such as buying physical gold in the form of jewelry, bullion, and coins; buying shares of a gold mining company or other gold-related investment; or purchasing something that derives its value from gold.
Gold miners provide investors with an upside potential depending on the gold price movements. Since companies can make investments to expand their production (e.g., develop new mines, expand existing ones, and acquire another gold miner) which can enable them to outperform the price of gold. Gold stocks are typically highly liquid.