There is a famous saying: ?a friend in need is friend indeed.? If we talk in financial terms, this statement can be rephrased as ?a financial asset in need is a financial asset indeed?. Normally, every investor builds a portfolio using a lot of financial assets, but is he aware which option among the lot prevents him from drowning in times of economic crisis, such as currency failure, inflation and stock market crash? If you are a serious investor, you already know the answer.

Gold, as an investment option, has the same property as it has as a precious metal, that is, it?s durable. No other investment option endures the test of time so well and, hence, it?s universally accepted as one of the best financial assets to possess in rough economic conditions. Not only investors, but also nations try to hoard gold in times of crisis. Very recently, there were reports on how China and India bought tons of gold to hedge against the dollar risk. Here, we explore the different investment options in gold.

Jewellery

Investing in jewellery is very easy as you only need cash to invest. However, as you own it in physical form, there is the threat of theft.Also, making charges of jewellery offset the profit in terms of price appreciation. Another thing to keep in mind is that gold jewellery is a virtual investment as people don?t usually want to sell it.

Indians invest in jewellery for multiple reasons. They can use it for marriage, wearing for parties, as well as get it liquidated in the time of crisis. Moreover, accumulating jewellery is a sort of tradition in India and, hence, many families still find it the best way to invest in gold.

Gold Coins

Gold coins are one of the most recognised and reliable ways to invest in gold. You can buy gold coins from banks, local shops etc. Also, exposure in gold coins doesn?t require a big investment as they are available in smaller denominations. While they are easy to store and highly liquid, there is a threat of theft as you own gold coins in physical form. While buying agold coin, you pay a premium of 4% to 10%. Around the same percentage is discounted while selling it, resulting in less overall returns. But since most gold coins are sold by banks, the purity is guaranteed, unlike jewellery.

Gold Bars

When it comes to gold bars, the premium or discount paid while buying or selling is the least among all options. One of the most recognised and reliable ways to invest in gold, gold bars can be bought from banks and local shops. While they enjoy liquidity, gold bars mean heavier initial investment as smaller denominations are not available. They also entail a storage cost.

If you are comfortable with storage and the large initial investment amount, gold bars is one of the best options. Issues of fake purchases can be taken care of if you buy from an authentic source.

Gold ETFs

Another way of investing in gold is gold ETFs. All you need is a demat account for buying them. Also, you lose nothing in form of premium or discount, nor do they have any security issues.

The initial amount required for investment is quite low. However, they are not as liquid as some of the other options. They also entail a transaction fee and annual maintenance charges.

Gold Mining Stocks

Gold mining stocks provide you an option of taking indirect exposure in the yellow metal. They have a better capital appreciation potential compared to direct investment. Not only are they very liquid, but also require low initial investment. But they are quite volatile and riskier compared to other options.

Gold mining stocks are one

of the most creative investment options and, hence, require careful research before investment.

If you are a seasoned investor, this can be an option for you as you can strike gold if you choose the right one.

Gold reserves are held in significant quantity by many nations and they are synonymous with money. Gold investment acts as the best shield against economic downturn and crisis situations, so it?s always wise to take exposure in them.