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How To Invest In Gold

Investing in gold: If you don’t want to buy jewellery or bars, there are several ways to do it digitallySince ages, gold has been a traditional way of investment for most Indians led by its high liquidity, inflation-beating capacity and also the prestige that comes along with it. Gold is considered a safe haven for investors during uncertain times.For the longest time, gold could only be bought in physical form via jewellery, coins, bars and so on. However, with the passing of time and to overcome the limitations of physical gold, several ways of gold investments have emerged.
How To Invest In Gold
Gold mutual fundsGold mutual funds are a type of mutual fund that invest its corpus in various gold forms including physical gold, gold mining companies. The performance of gold funds is dependent on the movement of stock prices of these companies.Since gold mutual funds are actively managed by a fund manager, it has the potential to offer higher return as compared to gold ETFs that mimic a market index.Digital goldIt allows you to purchase the precious metal online, but eliminates the need to physically store it. Digital gold can be bought online through fintech platforms like Groww, Kuvera etc., and through brokers as well. The gold purchased as digital commodity will be stored in insured vaults by the seller on behalf of the customer. All you need is internet/mobile banking and you can invest in gold digitally anytime, anywhere. Moreover, you can invest an amount as low as ₹10.Gold Exchange-Traded Funds (ETFs)Gold ETFs are funds traded on the stock exchanges and are similar to equity mutual funds. Every unit of a gold ETF represents one gram of gold and is of 99.5% purity. This physical gold is stored with depositories and it acts as underlying via which the units of the ETFs derive value. There are various funds that sell gold ETFs and investors have a wide variety to select from.
MCX Gold ContractsMCX gold contracts provide a method to trade in the metal through India’s recognized commodity exchange—the Multi Commodity Exchange or the MCX. MCX gold contracts are basically derivative futures and options contracts that provide investors with the opportunity to hedge, speculate and trade in the metal for a short-term span. These are suitable for the more experienced investors and are ideally traded under supervision.
Gold is among one of the various metals traded on the MCX. Gold contracts allow the investor to trade in the commodity for a minimum of 1-gram quantity. “Gold”, “gold mini”, “gold guinea” and “gold petal” are some of the quantity-specified products available on the MCX for investors to trade in. Steps to Invest in Gold DigitallyTo invest in SGBs and gold ETFs:
An investor needs to have a demat account linked to their PAN card and their bank account. Once the demat account is opened, they can buy select gold products from recognized stock exchanges or directly through the mutual fund for gold ETFs and via the RBI-announced SGB series for SGBs. To sell their gold digitally, investors can sell it in the secondary market i.e. the stock exchanges or they can be held till maturity and then redeemed. Various organizations also offer the opportunity to buy digital gold starting from INR 1. Before buying, know-your-customer (KYC) documents need to be complete and verified. The modes available for demat KYC include e-KYC and video KYC that smoothen and speed up the process of opening an account to buy gold digitally. KYC usually requires the individual’s PAN and Aadhar Card details. Gold InvestmentThere are a plethora of precious metals, but gold is placed in high regard as an investment. Due to some influencing factors such as high liquidity and inflation-beating capacity, gold is one of the most preferred investments in India. Gold investment can be done in many forms like buying jewelry, coins, bars, gold exchange-traded funds, Gold funds, sovereign gold bond scheme, etc.
Though there are times when markets see a fall in the prices of gold but usually it doesn’t last for long and always makes a strong upturn. Once you have made your mind to invest in gold, you should decide the way of investing meticulously. If you want to know more about Gold Investment plans and other facts like different ways to buy and invest in gold, how to invest in gold online and much more, you are at the right place.

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