Gold investment

Overview :

The gold investment is the traditional method of investment. As day by day the gold investment has now expanded. Here you can buy gold in demat form also and many more methods are discovered.

Information :

Investing in gold means buying the gold and holding for longer period and selling when it gets higher value. As in india everyone buys the gold but nor with the intention of investment bur with the intention of wearing purpose as in jewellry so that they can use ot for weddings purpose.Buying gold in india is attached to emotinal sentiment. But through investment point of view you can earn more returns through it and also there are many methods.

Four types of gold investment

  • Investment in physical gold.
  • Investment in sovereign gold bond.
  • Investment in Gold ETF.
  • Investment in digital gold

Pros :

Inflation doesn’t affect.

Liquidity in nature.

It holds value for longer period.

Shows significance wealth.

Safe and secure.

Cons :

Doesn’t generate the passive income

It is difficult to store.

Return are less compare to other investment.


Practically buying of gold.

1. Investment in physical gold.

It is a traditional method of investing in gold. In India, this method is mostly followed. It means buying gold in the form of jewellery or in the form of a biscuit.

  •  In the form of jewellery:

Most of the people buy jewellery so that they can be used in the form of accessories and also get earned from their investment.

  •  In the form of  biscuit:

Some people buy gold in the form of a biscuit. So that they could convert it into their desire design of jewellery and the second reason is they make a collection of biscuit and sell at right times so that they can earn good money from it.

You should know this before buying:

As buying gold biscuit has one more advantage can avoid the making charges. If you want to convert it into jewellery then it will charge you making charges. In jewellery you have to pay making charges So buying gold jewellery is expensive than buying gold biscuit.

2.Investment in sovereign bond:

It means buying gold in the form of a certificate. Yes, you can buy gold from 1 gram in the form certificate i.e…in sovereign gold bond.

Why it is good?

  • It will remain safe in the sovereign gold certificate as it is in your Demat a/c. So there is no risk of stolen.
  • Here you will get 99.9% pure gold.
  • Ás there will be no making charges as it will be not in the physical form.
  • After buying a sovereign gold bond you will get 2% interest till you sell it.
  • During the selling, you will get the amount of the current price of gold.

You should know this before buying:

  • Sovereign gold bond is issued by the Government.
  • If you buy sovereign gold bond then RBI give you limit or period so after some period or maturity you have to sell back the gold to the RBI at the current market value.
  • You can also sell the gold bond in the stock market but before it’s maturity as it will give you low value.
  • You can buy the sovereign gold bond when the government open subscription as it is opened in 2 or 3 times in the year.
  • You can also buy the sovereign gold bond from the stock market.

3. Investment in gold ETF find.

Here we invest in gold through a mutual fund. The concept is in such way that mutual fund collects the money from people who want to make an investment in gold ETF  then mutual fund invest that money in gold mines companies or in gold stock or RBI scheme of gold etc.

You should know this before buying:

  • Gold Etf fund is the same as shares, it is also kept in Demat A/c.
  • The value of gold depends on the net asset value of a mutual fund.
  • You can also apply SIP for Gold ETF if it is done through mutual fund app
  • You can invest in gold ETF through the app and also directly.
  • Here you get pure gold..99.9%. You can buy gold fund from 1 gram.
  • Here, you have to pay tax.

4. Investment through digital gold

Here you can buy gold and instead of using bank locker or your own locker for safety. You can keep your gold safe in digital form ( in their locker ) here is no risk of stolen.

You should know before buying

  • You have to pay GST.
  • You can do this through the app.
  • If you want your gold physically then you can just click delivery. Your gold will at your home physically.
  • No interest you will earn.



HOPE SO. Ysou learned Gold investment from the four types of gold investment.


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