How to Invest in Gold in India

India’s most cherished possession is Gold which holds excellent financial and cultural value. It has been a part of Indian culture for centuries and continues to be cherished by many Indians today. As a result, India’s investors strongly prefer investing in Gold despite the availability of more profitable alternatives.

Gold is a timeless and reliable investment asset – its value has been rising steadily for decades, and it can give you financial security for years to come. India has a gold reserve of 658 metric tonnes, one of the largest in the world.

However, for many people investing in Gold can be daunting. Luckily, with this guide on investing in Gold, you can quickly learn the basics and start your gold investment journey. We will also find out the Live gold rates in Mumbai and other states. Let’s start learning!

Investment in Gold has been a popular choice due to its tendency to move opposite the stock market. This makes it a more stable and secure option for people looking to diversify their portfolios. In addition, when the stock market takes a downturn, it is often reflected in an increase in demand for Gold as investors seek safe havens for their investments.

It’s essential to watch the fluctuating live gold rate in Mumbai before investing. We recommend comparing the rates over a week before buying to get the best deals. When investing in Gold, staying updated with the price chart is essential. 

If the gold prices are lower than usual, purchasing at the earliest opportunity is best. Maximize your returns on investment by selling gold in the market when prices increase. You can also check past gold prices to get an insight into the movement in general.

As technology has advanced, many new FinTechs have developed revolutionary methods to invest in Gold. Different forms of Gold can be bought, sold, or invested in nowadays (physical Gold, gold bonds, digital Gold, and more). This article will discuss the opportunities available for investing in Gold. Let’s find them:

1. Gold Jewellery– Jewellery is a popular and expensive investment option, especially among Indians, whose culture may make them more inclined to invest in it. Jewellery has an emotional value as an investment that cannot be quantified in numbers. This subjective approach makes jewelry a unique and attractive investment option. 

Gold is often considered a great investment option, but often people need to pay more attention to the making charges associated with it. These charges are significant and contribute substantially to your purchase cost and when you sell the item. When investing in Gold, individuals may also buy items such as biscuits, bars, or coins. 

It comes with low making charges and can give high returns when sold. But keeping Gold in physical form does come with a risk of theft or misplacement due to storage issues.

2. Digital Gold– Digital gold provides a cost-effective way of investing in Gold. With physical Gold, you can pay high charges for making the jewelry, which can reduce your overall profits if you need to wear it. 

Fintech has revolutionized how we buy and sell Gold – with platforms allowing you to start investing in digital Gold with as little as 1 Rupee. Get started on your digital transactions today and enjoy an easy, hassle-free purchase of Gold at market rates. Redeem your investments when you’re ready to sell! 

Actual physical gold merchants or manufacturers typically secure digital gold investments. These platforms have built relationships with traders and producers that guarantee the value of these purchases. When you invest in Gold, you can either benefit from the returns or receive physical Gold in exchange for your investment. 

However, not all platforms allow you to select physical Gold as your choice. Gold is a popular and reliable way to invest money and is currently one of the most preferred investment options. Unlike physical Gold, digital Gold is free of risk and security issues. 

3. Sovereign Gold Bonds– To provide alternative investments to Gold, the Reserve Bank of India launched the Sovereign Gold Bond (SGB) Scheme in 2015 under the Government of India. 

This scheme allows for the supervision and monitoring of investments, making it a safe and reliable option. You can invest in Gold regularly with this type of plan. A fixed sum is paid monthly to the jeweler for a predetermined period. Once you have made the deposit, you can use that money to purchase Gold from the jeweler. 

There is no need to worry about accumulating any interest as this is not a part of the transaction. These bonds usually involve an obligatory five-year lock-in period lasting eight years. Additionally, they come at no cost, as no management fees are associated with them. Gold secures these bonds but can only be redeemed for cash.

4. Gold ETFs– Exchange-traded funds that invest in Gold are available on the stock market. All you need to do is open a Demat account, and these funds can be accessed with ease. However, there may be some brokerage charges involved in the process. 

This form of investing does not require you to purchase physical Gold, yet it provides the same market exposure as if you had done so. Therefore, it is a viable alternative for those who do not want to own physical Gold.

Wrapping Up

Owning physical Gold in bars or coins comes with an initial cost of around 10%. When it comes to purchasing jewelry, the price shoots up even more. When investing in Gold, SGB and Gold ETF are two cost-effective options as no entry cost is required with SGB, while Gold ETFs have a marginal expense fee of around 1%.

Whether or not to invest in Gold suits, depends on your financial strategy and objectives. Purchasing Gold could be a beneficial decision if you need a combination of income and the ability to possess physical Gold. On the other hand, if you want to create wealth over the long term, investing in digital Gold or Gold ETFs may be the right choice.