Dhanteras Gold Buying 2021 Guide: Gold has long been a golden option for investment. There is a long tradition of buying gold on festivals like Diwali and Dhanteras. However, over time, now investing in gold can be done in many ways i.e. now apart from buying just physical gold, Digital Gold, Gold ETF, SGB (Sovereign Gold Bond)
It can also be invested through
Today is Dhanteras on 2nd November, so many investors are getting confused whether to invest in physical gold or digital gold as per tradition? In physical gold and digital gold, gold remains in the custody of the buyer whereas in SGBs and ETFs, no real gold is made available to the buyer or investor. According to experts, up to 10 percent of your portfolio should be invested in gold.
Charm is made of physical gold
Today there are many investment options in gold but the charm of physical gold in the form of coins, bars or jewellery, remains constant. According to the report of the World Gold Council (WGC), the sale of physical gold was affected due to the Corona epidemic and the purchase of online gold increased. However, Valuewise online has only 1-2 per cent share of the gold market.
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These are the advantages in buying digital gold
- According to Anika Aggarwal, President (Consumer Business), MMTC-PAMP, one can invest in digital gold at a rate of Rs 1 to Rs 2 lakh per day, unlike physical gold. Because of this, the interest of investors towards it has increased. On the contrary, in physical gold, you may have to buy at least 1 gram of gold. However, the purchase of digital gold and physical gold attracts tax at the rate of 3 per cent.
- According to Aggarwal, the biggest advantage in buying digital gold is that it can be redeemed for instant cash and returns are based on the price of gold, whereas physical gold has apprehensions about its purity.
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- Storage fees and GST are to be paid on investment in digital gold. According to Ajinkya Kulkarni, co-founder of Vint Health, the digital gold platform’s 3% storage fee and 3% GST makes the returns somewhat lower. The purchase of physical gold also attracts a GST of 3% but the storage fee is saved. However, there are expenses like making charges attached to the purchase of physical gold and if kept in the locker, then it also has to be charged.
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Investing better in ETFs and SGBs
According to Agarwal, investing in digital gold has less risk than debt and equity and is the most liquid asset. However, according to Kulkarni, one can get the highest return on investment in SGBs and ETFs. Kulkarni has advised to invest in Gold ETF for short term and SGB for long term.
(Article: Rajeev Kumar)
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