Buy a combination of blue chips and mid caps which offers value.
Gold has had a great run from 2001 to the current year 2008 where the prices have gone from around 250$/ounce to break its previous high of 850$/ounce and peak at 1030$/ounce before correcting to the 900 levels.
The reason for gold prices to increase so much is the new demand for Gold Investment in this volatile market. Gold as a form of investment used:
As a hedge against inflation
As a hedge against a declining dollar
As a safe haven in times of geopolitical and financial market instability
As a commodity, based on gold supply and demand fundamentals
As a store of value
As a portfolio diversifier; gold can act as portfolio insurance
Different ways of investing in this precious metal in the order of preference is given below.
1) Investing in GOLD ETFs like Benchmark Bees or UTI Gold
2) Buying bars
3) Buying coins
4) Buying ornaments.
