Best Ways to Invest in Gold
India is one of the largest consumers of gold. You know, Indians have the most of gold in the world. Gold is one of the most coveted metals in India. From engagement to anniversary to birthday, Indians have been buying and stacking gold for centuries. It is considered a symbol of prosperity, purity as well as stability in the Indian Culture.
Considering increasing prices of gold over the last several years, gold has become an excellent medium of investment. Gold is a perfect investment medium, Which can give you a good profit in the future. Today, we have different ways of owning gold, such as physical and paper. You can buy gold physically in the form of Jewelry, Coins, and Bars. The paper gold is, ETFs (Exchange-traded funds), Gold Bonds, etc.
Some of the investors prefer to investing or purchasing Gold in a physical form such as in the form of Gold jewellery, Coins, and Bars. The main advantage of buying physical Gold is that they can touch, seen, and feel his Gold.
Here are some of the best way to invest in Gold
1. Gold Jewelry – Nowadays, there are lots of Gold investment plans are available in the market. However, in India, Mostly, people prefer to invest in solid gold by buying gold jewellery. One of the best things to invest in gold jewellery is, you can wear it.
2. Gold Coin Scheme – It is one of the best options to invest in physical gold. You can buy silver coins and bars from Jewelers, Banks, Jewelry or e-commerce websites and any finance company. However, Banks and financial companies assured of quality, but a jeweller also guarantees of quality and purity, as well as it could offer you lower price compare to banks. An authorized jeweller offers you Gold Cons & Bars with 24 karat purity and 999.0 fine gold. With the lifetime money-back guarantee.
3. Gold ETF – ETF’s (Exchange-traded fund) is one of the best and secure way of making a profit on gold. It is an open-ended mutual fund scheme based on the ever-fluctuating cost of gold. We know that physical gold doesn’t generate income, and the making charges are also high. ETFs gives you the dual benefit of stock trading as well as gold investments. The one Gold ETFs units equal to 1 gram gold. Its works like a stock and backs 99.5% gold purity. There are many benefits to choosing EFT over physical gold if you want to make extra profits. Some of them are listed below: No hassle of finding genuine brokers, purchasers or sellers. It is considered as long-term capital and does not attract wealth tax. It saves you money since there will be no VAT, sales tax, premiums, etc. They can also be used as collateral if we need to raise funds using it. There is one limitation to ETF but is considered a minute when you regularly invest and divest in gold. For ETF’s, you should have a Demat account, and it may attract nominal fees based on the brokerage firm or financial institution you choose.
4. Gold Savings Schemes – An alternate way of investing in Gold. In which, you will deposit a fixed amount every month the chosen tenure on the end of the term. You can buy Gold from the jeweller, Equal to your total deposit amount. The jewellers give you different types of advantages like If you are investing in one-year schemes. The most of jewellers, add a month’s instalment at the end of the tenure as a cash incentive or may even offer a gift item. Or they can add half of the amount as an incentive in the last instalment.
5. Sovereign Gold Bond(SGB) – Sovereign Gold Bonds or SGBs is another way of owning paper gold, which is issued by the government of India. You can buy it from Banks and Post offices. The term of an SGBs is usually eight years, with a lock-in period of 5 years. It gives you two types of investing benefits; Firstly, investors earn interest at 2.5% per annum on the amount financed in SGBs. The interest income taxed at applicable slab rates. Secondly, if the investor holds the SGB for the entire term of 8 years, the resulting capital gains are entirely tax-free, which makes SGBs an ideal option for investors looking to invest in gold for a long time and enjoy tax benefits on their profits.
6. E-Gold- One of the best option to invest in paper Gold. You can invest in E-Gold just as you invest in shares. In 2010, The National Spot Exchange (NSE) launched e-gold in India, for those investors who wish to invest in gold. The most significant benefit of investing in E-Gold is, it allows you to invest in gold with very lower values than physical gold. For invest in E-Gold, you should have a Demat Account. After open Demat account, you can easily invest in E-gold, and you can take physical delivery of the gold at any time by redeeming e-gold units to your Demat account.