Investing in gold is considered a very good investment, if you buy physical gold, then you need some minimum investment for it, which is not possible for everyone.

Basically in this blog we are going to talk about how you can buy and sell digital gold or how to invest

At the same time we will also know that comparatively in all these Gold Investment What is the best option?

Best to invest in gold 5 ways

in today’s time Gold Investment There are many options available in

Buying jewelery or physical gold from a local shopkeeper

Investing through ETFs

investing through mutual funds

as Digital Gold, or

Investing can be done by buying Sovereign Gold Bonds.

There are some advantages of investing in gold in these ways, while there are also some disadvantages, we will also know them in detail.

So let’s go one by one to know all those ways how one can invest in gold? What are the advantages and disadvantages of investing in it? And what can be the best option to invest in gold?

Gold is one of the most precious metals in the world. Gold is considered one of the most popular long term investment options.

Buy physical gold

Your choice of buying physical gold such as gold coins, biscuits or jewelery is your local jewelers that you trust.

Here you can invest in gold by paying in cash.

This is one of the traditional ways of investing in gold. Buying gold jewelery should not be taken as an investment; Because we buy it for our consumption.

In this, there is a significant reduction in the name of design and making charges etc.

There is a problem with its storage,

There is a possibility of it being stolen or missing when kept at home; And there is a locker charge for keeping it in the bank.

There is a problem of purity on its purchase whether the gold is pure or not. There is a risk of adulteration in this.

There is no extra income by keeping it with you.

Buying Gold Coin or Gold Bar

Gold bullion which is found in the form of coins or bars. It is available in 24 carat only.

There is no problem of impurity in it.

It is a better option than jewelry as it is of 24 carats.

There is also a problem of security if it is kept in the house and there is a charge for keeping it in the bank locker.

You can take a loan on less than 50 grams of Gold Coin in the form of coins, but the loan cannot be taken by mortgage of gold biscuits or bars.

The option is now available to buy gold as digital gold.

Investing in Gold as Digital Gold

There are many digital wallet apps available nowadays like GooglePay, PhonePe Paytm, Freecharge etc.

Digital Gold can be purchased through them.

Apart from this, you can also buy gold in digital form from the National Spot Exchange.

In this, you can invest by buying gold for a minimum of one rupee. The money you invest buys gold in three companies.

These companies are MMTC-PAMP, in which MMTC is a government organization and MKS PAMP is a Swiss firm, which work jointly.

Another company Digital gold India Pvt. Ltd. is the SafeGold brand, and the third company is named Augmont Gold Ltd. Is.

These are all gold refinery and melting companies.

There is no limit to buy digital gold on most of the platforms.

You can buy as much gold as you want according to your capacity. Hence, it has good liquidity.

You can also take home delivery of minimum 0.5 to 1 gram by buying Digital Gold.

In this you can keep your investment for 5 years.

After this you will have to take delivery of the gold or sell it at that time rate.

In this, the charge of gold storage is zero or very less.

You can invest up to ₹ 50000 on platforms like Paytm and Google Pay.

More than this, you will be able to invest only after e-KYC.

A minimum of ₹100 can be invested in a stock holding co-operation, but it cannot be invested without KYC from the beginning.

Investing in Gold through ETFs or Exchange Traded Funds

Gold ETFs are traded by being listed on the stock exchange.

If you want complete information about ETFs What is ETF then you can read this

You will need a demat account to invest in ETFs.

You Zerodha Or by opening an online account sitting at home from any other platform etf gold You can start investing in

With the growth of the market, you can get good returns.

Gold ETFs follow the Gold Index and invest money in it.

Some ETFs invest in gold mining companies as well as in debt securities to balance the risk. ETF is a good investment yet it is still not popular in a country like India.

Investing in Gold Funds of Mutual Funds

Gold Mutual Fund also known as Gold Fund of Funds.

These are open ended funds that invest in different gold ETFs.

Investors who do not have technical knowledge of the market can also invest in gold through mutual funds. There is no need for a Demat account for this.

Examples of mutual funds gold


gold mutual fund list

Investing in Gold by Buying Sovereign Gold Bonds

The Government of India on 5 November 2015 launched a gold monetization scheme called Sovereign Gold Bond.

The Sovereign Gold Bond is issued by the Reserve Bank of India. They are quite safe.

In this, the money invested by you earns interest at the rate of 2.5% per annum.

At the end of the bond’s tenure of 5 years, you get paid according to the market rate at that time.

It is also traded in the exchange market.

Loan can also be taken by mortgaging the Sovereign Gold Bond.

RBI issues this bond three to four times a year.

You can take it through a bank, post office or stock holding corporation. If available in the stock market, it can also be bought from there.

Comparative status of investing in gold

physical gold digital gold Gold ETF gold mutual fund sovereign gold bond
GST 3% 3%
expense ratio 0.5-1% 0.5-1.5%
exit load 1-2%
SIP Yes No Yes No
liquidity Good Good medium Good medium
minimum investment 0.5-1 gram ₹1 1 gram ₹500 1 gram

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