- Date : 11/08/2020
- Read: 3 mins
Women can explore these other options beyond investing in physical gold for safety and high returns
Gold jewellery, especially for Indian women, has always been considered a form of security. Gold ornaments are passed down from generation to generation, and every new bride is gifted a significant amount of gold jewellery to mark the start of an auspicious new chapter in her life.
However, with more lucrative forms of gold as an investment becoming increasingly popular, these family heirlooms are being seen more as keepsakes rather than a sound investment by the financially savvy women of today. High making charges, safety concerns, and outdated designs are some of the reasons behind this trend.
Sounds interesting? Apart from buying gold jewellery, here are 4 ways in which you can invest in gold:
1. Gold coins
For most people looking at gold as an investment option, gold coins are at the top of the list of possible investment avenues. These days you can buy gold coins from banks, jewellers, non-banking finance companies (NBFCs), and even on certain e-commerce portals! The government has launched special gold coins with 24-karat purity and 999 fineness that come with ant-counterfeit protection and tamper-proof packaging. Additionally, there is a transparent buyback option that makes gold coins a safe and lucrative way to invest in gold.
2. Digital gold
The world is going completely digital, so how can gold be left behind? You can now buy gold coins, bars, and jewellery on apps from vendors like Paytm, Stock Holding Corporation of India, and Motilal Oswal. You can make your purchase in terms of grams or rupees, with the minimum purchase value starting as low as one rupee. You don’t have to worry about the safety of your gold as it is stored by the vendor in highly secure vaults. It is extremely convenient to invest in digital gold as you can buy or sell it online at any time, including bank/public holidays.
3. Sovereign Gold Bonds
Sovereign Gold Bonds or SGBs are issued by the government every 2–3 months, with a purchase window of about a week. If you do not want to wait for a fresh issue of SGBs, you can buy earlier issues, which are usually available in the secondary market at the current market value. The tenure of an SGB is 8 years, making it ideal for your long-term financial goals. The biggest advantage of investing in SGBs is that your gains are exempt from tax on maturity.
4. Gold Exchange Traded Funds
Gold ETFs are an easy and convenient way to invest in the stock exchange using gold as the underlying asset. The price of gold here is benchmarked to the price of physical gold and you can start with as little as 1 gm of gold. As with mutual funds, you can invest either a lump sum at one go or small amounts at regular intervals via a systematic investment plan (SIP). All you need to invest in gold ETFs is a Demat account and a trading account with a stockbroker.
The next time you consider gold as an investment, steer clear of the jewellery stores and consider these modern, convenient, and rewarding avenues of investing in gold! This way, you can continue the age-old tradition of having gold as security but without the additional costs and worries that come with buying and storing gold jewellery. If you planning to buy gold this festive season, here's your checklist that will help you make a wise decision.