The Indian obsession with gold is no secret. For weddings, religious occasions, as well as festivals, buying gold has always been a popular ritual. But it’s more than just an investment option or a status symbol. It is also insurance against financial emergencies. Previously, gold could only be brought in in its physical forms like jewelry, gold bars, and coins. This form of investment was both risky and costly. However, today there are different ways to invest in gold. For investors, gold is a safe and risk-free investment that can be purchased through ETFs (Exchange Traded Funds) as well as mutual funds and stocks. Investments in gold are considered risk-free because gold prices are inversely related to stocks.
Here are some profitable options for investing in the yellow metal:
1) Gold sovereign bonds (SGB)
SGBs are a way for investors to hold gold in an alternative way to owning physical gold. This diet was introduced by the government of India. SGBs are issued by the Reserve Bank of India towards the end of 2015. This program has a blocking period of 5 years and at maturity, the investment made is reimbursed in cash.
2) digital gold
Gold can be purchased digitally through different platforms. The minimum investment amount for digital gold can be as low as Re. 1. This gold can be delivered to you in the form of physical gold. Most of these digital platforms have links with traders and gold makers.
3) Gold exchange traded funds
Gold ETFs are investments that are traded on a stock exchange. To invest in gold ETFs, you must have a Demat account with a bank. Investing in gold ETFs doesn’t mean you own physical gold. This means that you have invested in gold in electronic form.
4) Gold mutual funds
It is a plan in which the investments of various investors are grouped together and invested in a specific plan. One does not need a Demat account to invest in gold mutual funds; they can be used by any commercial bank.