- Date : 07/11/2023
- Read: 3 mins
Gone are the days when buying gold only meant jewellery, ornaments, or bullion. Today, there are different modes of buying the yellow metal, giving you the choice to buy it physically or digitally. Explore the different ways in which you can invest in gold.
India is the second-largest consumer of gold, and as the festive season approaches, the demand jumps. Between January 1971 and December 2022, gold delivered an average return of 7.78% p.a., with an average return of 0.4% in 2022.
Whether it is for the ornamental value or investment viewpoint, gold is a favourite, and with the modern era’s evolving markets, there is more than one way to buy gold. While gold jewellery and bullion are the traditional methods, you can also invest in gold mutual funds, gold saving schemes, digital gold, and the like. Let’s explore five unconventional investment methods that you can consider this festive season.
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India is the second-largest consumer of gold, and the demand jumps up during the festive season.
-
You can buy gold physically and digitally. Physical gold includes gold jewellery, ornaments, coins, or bullion.
-
Digital gold is the mode of investing in smaller units of gold with affordable amounts.
-
Other options include gold mutual funds, ETFs, saving schemes, and Sovereign Gold Bonds.
Modes of Investing in Gold
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Gold Exchange Traded Funds (ETFs)
Gold ETFs are listed securities that collect investments from different investors and invest the pooled corpus in physical gold. One ETF unit equals one gram of gold of 24-karat purity. The ETFs are listed on the stock exchange and are traded at the same price throughout India.
-
Gold Mutual Funds
Gold mutual funds invest in gold ETFs, gold manufacturing and selling syndicates, mining companies, etc., having a diversified portfolio. They track the movement of gold prices and allow you to invest in affordable amounts.
-
Digital Gold
Digital gold is the mode of buying smaller and more affordable units of gold online and storing your investments in a secured vault. The minimum investment can start from ₹1, and you can invest any time. You can redeem the investment by selling your gold or redeeming it for an equal amount of physical gold.
Also Read – Know how gold fares against inflation
-
Gold Saving Schemes
These schemes are usually offered by jewellers wherein you deposit a fixed amount every month, like recurring deposits, and then buy gold or gold jewellery using the accumulated amount. Some jewellers pay one or two instalments on the investor’s behalf to attract customers.
-
Sovereign Gold Bonds (SGBs)
SGBs are issued by the Reserve Bank of India (RBI), wherein you can invest in gold in paper form. You earn interest on the investment during the investment tenure of 2.5% p.a., and on maturity, you get the prevailing value of gold in cash.
Click here to read the latest articles on Investing
The Bottom Line
This festive season, try something new. Invest in gold through these different modes and diversify your portfolio.
Also Read – Know what to do as gold prices soar
Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.
India is the second-largest consumer of gold, and as the festive season approaches, the demand jumps. Between January 1971 and December 2022, gold delivered an average return of 7.78% p.a., with an average return of 0.4% in 2022.
Whether it is for the ornamental value or investment viewpoint, gold is a favourite, and with the modern era’s evolving markets, there is more than one way to buy gold. While gold jewellery and bullion are the traditional methods, you can also invest in gold mutual funds, gold saving schemes, digital gold, and the like. Let’s explore five unconventional investment methods that you can consider this festive season.
-
India is the second-largest consumer of gold, and the demand jumps up during the festive season.
-
You can buy gold physically and digitally. Physical gold includes gold jewellery, ornaments, coins, or bullion.
-
Digital gold is the mode of investing in smaller units of gold with affordable amounts.
-
Other options include gold mutual funds, ETFs, saving schemes, and Sovereign Gold Bonds.
Modes of Investing in Gold
-
Gold Exchange Traded Funds (ETFs)
Gold ETFs are listed securities that collect investments from different investors and invest the pooled corpus in physical gold. One ETF unit equals one gram of gold of 24-karat purity. The ETFs are listed on the stock exchange and are traded at the same price throughout India.
-
Gold Mutual Funds
Gold mutual funds invest in gold ETFs, gold manufacturing and selling syndicates, mining companies, etc., having a diversified portfolio. They track the movement of gold prices and allow you to invest in affordable amounts.
-
Digital Gold
Digital gold is the mode of buying smaller and more affordable units of gold online and storing your investments in a secured vault. The minimum investment can start from ₹1, and you can invest any time. You can redeem the investment by selling your gold or redeeming it for an equal amount of physical gold.
Also Read – Know how gold fares against inflation
-
Gold Saving Schemes
These schemes are usually offered by jewellers wherein you deposit a fixed amount every month, like recurring deposits, and then buy gold or gold jewellery using the accumulated amount. Some jewellers pay one or two instalments on the investor’s behalf to attract customers.
-
Sovereign Gold Bonds (SGBs)
SGBs are issued by the Reserve Bank of India (RBI), wherein you can invest in gold in paper form. You earn interest on the investment during the investment tenure of 2.5% p.a., and on maturity, you get the prevailing value of gold in cash.
Click here to read the latest articles on Investing
The Bottom Line
This festive season, try something new. Invest in gold through these different modes and diversify your portfolio.
Also Read – Know what to do as gold prices soar
Disclaimer: This article is intended for general information purposes only and should not be construed as insurance or investment or tax or legal advice. You should separately obtain independent advice when making decisions in these areas.
