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Investment in Gold: Gold will give security in times of crisis! These 5 ways you too

The gold market has seen prices fall many times, but it always returns strongly. Image: Reuters

Ways to Invest in Gold

There is a steady decline in global production due to the Covid-19 epidemic. The effect of this is that the returns from most asset classes have been reduced. Hence, investors worried about the market scenario are turning to gold, which always emerges as a stable value reserve in times of crisis, while returns from other options are volatile.

The gold market has seen prices fall many times, but it always returns strongly. Even at times, it has outperformed bonds and stocks. A special thing about investing in gold is that some gold assets can be easily converted into cash. If you also want to invest in gold, this can be done in 5 ways…

Investment in physical gold (physical gold)

One can buy gold physically in the form of gold coins, bars and jewellery. Indians love gold jewellery quite a lot, but the things that should be taken care of before shopping are security, insurance cost and old design. Also, making charges should also be taken care of, which range from 6% to 25% of the cost of gold in India. If you want to buy gold coins i.e. gold coins, then these can be purchased from jewellers, e-commerce websites, non-banking financial companies and the government. The Government of India has launched indigenous minted quoins, in which the image of Ashok Chakra and Mahatma Gandhi, on the other hand, has been etched.

Invest in Gold ETFs

If you want to invest in paper gold, then the best way is to buy gold ETFs (exchange-traded funds). Since investing in ETFs does not involve the high initial purchase, insurance and even cost of sales, it is highly cost-effective. To invest in ETFs, people need to have a trading account from an online stockbroker and a Demat account. Once an account is created, it is just a matter of choosing gold ETFs and placing orders from the broker’s trading portal, after that the investment starts.

Investment in GAP (Gold Accumulation Plan)

Gold can also be purchased online through mobile wallets such as Google Pay, Paytm, PhonePe, under the Gold Rush Plan of Stock Holding Corporation of India. These options to buy ‘Digital Gold’ are offered in collaboration with either MMTC-PAMP or SafeGold or both. Digital gold can be redeemed as physical gold or resold to the seller.

Amazon Pay can buy Digital Gold, GPay, Paytm for Rs 5

Investment in SGB

This is another way of investing in paper gold. The government issues SGB (Sovereign Gold Bonds), which are available to buy every few months over a fixed period of time. SGB ​​is tax-free upon redemption. Since SGB has a maturity period, they are considered good for long-term investment. The Government of India started the Gold Monetization Scheme on 5 November 2015 so that the public can get away to earn interest on gold lying idle in bank lockers.

Invest in Future Gold

In Future Gold, the price of gold is actually estimated and profited by price volatility. If gold moves in the expected direction, then one can earn money very quickly in the futures market. But if this is not done then the person can also lose money in a very short time.

By: Prathamesh Mallya, AVP-Research, Non-Agri Commodity and Currency, Angel Broking Limited

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