The festive season in India, especially the time of Navratri and Diwali, has always been considered the most auspicious time to buy gold. During this time, not only does the crowd of buyers increase, but the market also gets flooded with new offers. But do you know that there are not only two ways to invest in gold? You can not only buy jewelry or coins, but you can also invest in paperless gold, i.e., Gold ETF.
Great return of gold
In the last year, gold has given excellent returns to its investors. If we talk about physical gold, its price was ₹ 73,200 per 10 grams a year ago, which has now increased to ₹ 1,12,500. This means that investors have made a tremendous profit of 54%. At the same time, the Gold ETF also did not disappoint the investors and has given a bumper return of about 50%.
What is a Gold ETF, and what are the benefits of investing in it
A gold ETF (Exchange Traded Fund) is an investment that is bought and sold like shares on the stock exchange. It tracks the price of gold; that is, if the price of gold increases, the price of your ETF will also increase. You can buy it through a demat and trading account.
Benefits of investing in Gold ETF
In this, you do not have to keep gold in physical form, so there is no fear of theft or loss.
You do not have to worry about the purity of gold.
The price of an ETF is listed in the market, so you can easily track its price.
You can buy or sell it anytime, like shares, so there is no problem with money.
You can start investing in it even with less money.
Physical Gold Benefits and Disadvantages
Traditionally, Indian investors prefer to buy physical gold, i.e., jewelry, coins, or biscuits.
Benefits
It is preferred more for marriage and family reasons.
Disadvantages
There is a making charge, which is not refunded when selling.
Safety
It is not safe to keep physical gold at home, and it also costs money if kept in a bank locker.
Other investment options
There are some other options to invest in gold:
Gold Mutual Funds
Sovereign Gold Bonds (SGBs)