Physical Gold Vs Digital Gold, Gold ETF and Sovereign Gold Bond: Which is the best way to invest in Gold. This debate intensifies every Diwali, when people buy gold. While some people prefer to buy physical gold, some consider investing in digital gold, sovereign gold bonds and gold ETFs as a better option. Actually gold is not just for investment. People wear gold jewelery and this is also its most important utility. People who buy physical gold say that you cannot wear paper gold. Then what is the use of buying gold? But those who consider gold as an evergreen investment, invest in Sovereign Gold Bonds, Gold ETFs and Digital Gold.
Sovereign Gold Bond (SGB)
Investing in Sovereign Gold Bonds (SGB) has proved to be quite popular in recent times. Investing in Sovereign Gold Funds is gaining popularity due to sovereign guarantee, interest on your purchase and many times cheaper than the market rate. However, it also has a lock-in period. It can also be bought from the stock exchange and its liquidity is easy. Experts say that investing in gold should be done as a long-term investment. In that sense, investing in Sovereign Gold Bond is suitable.
gold etf
To invest in Gold ETF, it is necessary to buy at least one unit of gold. Each unit is of 1 gram. Buying gold ETFs is similar to stocks. One can buy Gold ETFs from existing trading account only. The units of Gold ETF are deposited in the demat account. Gold ETFs are sold through the trading account itself. Gold ETFs can also be used as security for taking loans. You have to pay making charges for physical gold. But this is not the case in Gold ETFs.
Digital Gold: Planning to buy digital gold in the festive season? Know these important things including tax liability before investing
gold fund
Gold Fund invests in various forms of gold. These may also include physical gold and shares of gold mining companies. Gold funds investing in physical gold offer investors the flexibility to buy pure gold at a lower cost. Investors can sell the purchased gold anytime at market prices.
Digital Gold
Digital gold can be bought online. Its purchase is done through various investment platforms, which buy and hold gold in the name of investors. These investment platforms keep the gold purchased on behalf of the customer in vaults/lockers which are audited and insured. Investing in digital gold also offers an option to take physical delivery of the gold but, you may have to pay a delivery charge. Generally, these digital gold products have a maximum holding period, after which the investor has to take delivery of the gold or Have to sell it back.
Clearly, investing in gold clearly depends on your needs and risk appetite. For those who want to invest in gold by removing stocks from their portfolio or want to stay in it for a long time, investing in digital gold can be a better option. Most investment advisors believe that the share of gold in your portfolio should not exceed 5 to 10 per cent. These advisors believe that your investments should be diversified in the form of shares, bonds, gold and real estate.
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