The most utilized gold investment options in India

You can invest in gold in many ways, there are some ways to invest:

Gold Jewelry investment

Gold ornament is one of the traditional methods of investing in gold. In it, you go to the jewellery shop and buy the gold jewellery of your choice. But, if you want good returns in your investment, you should avoid this option of investment. This is also because its investment costs not only include the price of gold but also jewellery making fees. You do not get the full amount of money when you sell it again. Thus, you go into loss rather than profit.

Invest in gold bars and gold coins

For people who are interested in investing in the physical form of gold, gold bars and gold coins for them. This is a better option than gold jewellery because making fees are not included. In addition, gold ornaments are made of 18- carats by 22-carat gold, but gold coins and gold bars are 24-carat gold. You can buy gold coins and gold bars from banks or jewellers. But the only problem is that when selling them again, banks do not buy it back, whereas jewellers buy gold jewellery from their customers.

Gold Funds of Funds (Gold Mutual Fund)

Gold Fund of Funds( Gold Mutual Fund) is open-ended funds that invest in gold ETFs. They come in the form of a portfolio of shares included in the mining, storage and distribution of gold. Even if it is a gold investment option associated with the market, but you do not have to open a DEMAT account for this. If you choose this investment, you have to pay a nominal brokerage fee for the purchase and sale of ETF units.

Gold Exchange Traded Fund (Gold ETD)

Gold Mutual Fund and Gold ETF both are mutual fund investments. Gold ETFs are listed and do business in stock exchanges. Therefore DEMAT account is necessary for this also. This option of investment will include a brokerage fee, which is a nominal fee for buying and selling gold ETF units.

Buying shares of gold mining companies

There are over 500 gold mining companies in India, which can be invested. The share prices of these companies depend on gold prices. In addition to the gold rates, other factors like production costs also affect returns. This is another better option for investing in gold in India.

Leave a Reply

Your email address will not be published. Required fields are marked *