Since ancient times Gold has been considered a status symbol in India. People in India spend a huge amount of money on buying gold jewellery during their marriage. With the passage of time, people have now started considering gold as an investment.
In ancient times you could only invest in gold through the purchase of jewellery or bars. But now you can invest in gold through various options like Sovereign Gold Bonds, Gold ETFs, Digital Gold etc. In this article, we will understand some of the best ways to invest in gold.
Best Ways to Invest in Gold
You can invest in gold in the following ways:-
- Jewellery
Investing in gold by buying gold jewellery is one of the most ancient methods of gold investment. This is one form of direct investment in gold. Here the making charges are added to the price of gold while purchasing jewellery.
This is a bit risky investment as the buyer also has to look after the proper storage of the gold. There is always a risk involved in theft.
- Solid Gold
Solid Gold is another form of direct investment in gold. You can invest in solid gold by purchasing gold bars, biscuits and coins. Here the making charges are low as compared to jewellery, so you can make more profit when you sell. Here too, you face the problem of storage and theft.
- Gold Schemes
Gold schemes are very popular in India. These schemes are offered by jewellery shops and jewellers. These schemes work similarly to SIP. You can invest some amount every month for a fixed tenure. At the end of tenure, you can buy the physical gold with a maturity amount.
- Gold ETFs
Gold ETFs are the modern way of investing in gold. ETF means exchange-traded funds. Gold ETFs are listed on the stock market just like stocks. You can buy and sell Gold ETFs through the stock exchange.
A Demat account is necessary for investing in Gold ETFs. As Gold ETFs are listed on stock markets, so they are very safe and liquid.
- Gold Mutual Funds
Gold mutual funds act very similarly to other mutual funds. These are managed by Asset Management Companies and invest in Gold ETFs. The value of Gold Mutual Funds is directly dependent on Gold. You can also invest in a Gold Mutual Fund in the form of a SIP.
- Sovereign Gold Bonds
Sovereign Bonds were launched by the Government of India in 2015. They are supervised and regulated by the Reserve Bank of India. These bonds carry a lock-in period of 5 years and are available for a tenure of 8 years.
You can invest in Gold Bonds starting from a minimum investment of one gram. The maximum investment allowed is 4 kg. When you redeem these bonds, you get cash and not gold.
- Digital Gold
Digital Gold is the newest way to invest in gold. You can buy digital gold from broking firms, mobile e-wallets, financial institutions, and various Fintech platforms. You can invest in Digital Gold even with ₹1.
You can either redeem digital gold in cash or physical gold. But you need to know that the physical delivery option is not given by all platforms and brokers.
Conclusion
Gold is one of the safest investments and gives high returns. There are various ways to invest in gold, as discussed in this article. You can analyse all options and select the best suitable for you.
