Invest In Gold

Different Methods to Invest in Gold

Now that you know about the benefits of investing in gold, let’s talk about the more important subject, i.e., “How to invest in Gold?” Apart from the traditional method of buying jewelry, gold coins, bars, billions, or artifacts, you can now invest in gold online through several modern methods. For example, you can invest in gold Exchange-Traded Funds (Gold ETFs) or gold mutual funds. Investing in gold ETFs is equivalent to buying physical gold, albeit in the digital form.

Below are the different methods in which you can invest in gold in India:

• Buying physical gold (jewelry, gold coin, gold bar, gold biscuit, etc.)

• Investing in gold ETFs through a Demat account

• Investing in gold mutual funds

• Buying sovereign gold bonds

   

  Comparison Between Different Gold Investment Methodologies

   

  Physical Gold	Gold ETFs	Gold Mutual Funds	Sovereign Gold Bonds
  Buy gold in the physical form.	Buy ETFs that invest in gold bullion.	Buy mutual funds that invest in gold bullion or gold mining companies.	Buy sovereign gold bonds issued by the Reserve Bank of India.
  No Demat account is required.	A Demat account is required.	No Demat account is required.	No Demat account is required.
  You have to pay only the price of the gold and the making charges (if any).	You can invest via a stockbroker that can levy asset management charges and brokerage fees.	A fund management charge is levied by the Asset Management Company.	You’re required to pay the price of the bond and nothing else.
  Fluctuations in gold prices may affect the value of physical gold.	Market fluctuations may impact your investments.	Changes in gold prices do not affect the value of gold mutual funds.	Safer investment avenue that provides assured returns.
  No paperwork is required.	Paperwork is required.	Paperwork is required.	Minimum paperwork is required.

Documents Required to Invest in Gold

• No documents are required to purchase physical gold worth less than Rs. 2 lakhs

• For purchasing gold worth Rs 2 lakhs or more, you may have to submit your PAN card to the seller

• For investing in Gold ETFs, you will need to have a Demat account

• For investing in gold mutual funds or sovereign gold bonds, you will need to submit your KYC documents, including your PAN card, Aadhaar card, Voter ID card, and/or Passport

   

  Benefits of Investing in Gold 

  Investing in gold offers several benefits to investors. First of all, it is not as risky as the stock markets. Secondly, investing in gold has historically provided inflation-beating returns with zero or very less chances of capital depreciation in the long term. And thirdly, it offers high liquidity as you can sell your gold anytime to liquidate your money.