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Gold, Stocks or Commodities- Best invest to chose over time

Gold, Stocks or Commodities: Best Invest To Choose Over Time

One of the biggest questions that arises today in everyone’s mind is where to invest. During the lockdown and the period after that the prices of the stock are skyrocketing.Though gold is also a traditional hedge fund there are many ups and downs associated with it. In recent days the golds prices are fluctuating a lot but it doesn’t hinders the masses to stop investing in it. The rise in the stock prices has been mouth watering for many and it has provided very high returns. And the bull is still running high.Commodities or assets are one more thing to consider during investing though they dwindle sometimes but they usually give solid returns.

 

When investing in stock one should think in the long term say for 3-7 years in most cases.

Gold as said earlier is a traditional way of investment it is the default hedge fund of every household. It provides substantial relief in times of distress when funds are needed. It is the most liquid form when compared to the other two. Also investing in gold is also easy as it doesn’t require detailed technical knowledge as in the case of stocks. Those who aren’t much risk averse should invest in gold as most of the times it can provide them the desired return.

Now, focusing on stocks, as we are all aware that the prices of stocks are highly volatile. They can provide sky-high returns on one side and can also prove to be a disaster on the other. But sound technical skills and a great capacity to manage risk can provide rich dividends also. As described in the earlier para long term approach is the much needed thing while entering in stock trading. And one has to walk like a turtle and when time comes he also has to change form to a Cheetah. Though stocks can also provide high returns in a fraction of time, this happens only sometime. One has to adopt the wait and watch approach if one wants to achieve success in the long term.

Also nowadays Mutual Funds and ETFs are the emerging fields of investments. But it’s a fact that higher returns can only be achieved if one invests directly in stocks and that too in equity.

Gold, Stocks or Commodities- Best invest to chose over time

The third thing is the commodity is like a bridge between the stocks and gold as it has the features of both. It is most volatile and sometimes the default hedge of the investor. But these are the assets that provide the best hedge against inflation. One can invest in it and reap benefits in times of severe distress and inflation. When compared to the first two this is the most chosen class of the assets.

Commodity Trading in Singapore

Singapore has one of the best markets in the world, the most important feature of the market is that it operates on a free market system. In a free market, the price and the forces of demand and supply are decided by the market forces, so there is less intervention by the government. Commodities are mostly traded at SGX (Singapore Commodity Exchange) and SICOM (Singapore Commodity Exchange).

Like India the commodity market in Singapore also witnessed a high return in the commodity sector but what makes it different is that it is more highly regulated than the Indian Commodity Market.

Conclusion

Now concluding, everything has pros as well as cons, but at last, we can conclude three things. 

First, the persons who are risk-averse and have sound skills should invest in stocks.

Secondly, those who are somewhat less risk-averse but are otherwise confident investors can invest both in gold and commodities.

Third, those who have a deep insight into the future and are also averse to risk and invest in all these commodities in the proportions they think are sufficient.

They can divide their investments into all three to reap great dividends and absorb the shock of loss. For more information, you can contact PL Global Impex Pte Ltd.

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