Gold Investment - How To Invest And What Is The Best way To Invest In Gold In India

Today we are going to talk about gold investment, how to invest in gold in India and what is the best way to invest in gold. After that you can decide that which gold investment options is best for you. If you want to invest in gold. And also you can decide easily that which is best option, physical gold investment or digital gold investment. Even in today's time many people consider it auspicious to buy gold and also gold is even considered a good diversification option because when the entire share market was going down at that time, gold price was giving very good returns.

So if we are looking for gold, it is considered a very good, traditional investment asset in India. And in India, many people, if I talk about the North till the South and the East till the West, people of every region consider it very good to invest in gold. They think that gold is such an investment which comes in handy during bad times. And may be this is true when the market and economy is down, at that time the price of gold is up. At that time people remove their money consider it right to invest in gold. And if I talk about now, then the gold price now is trading higher than 49,000 and it has given very good returns in the past 3-6 months. And it might be possible that Gold price is doubled after 5 years from now.

Now we will talk about how to invest in gold and what is the best way to invest in gold through which you can choose best gold investment options for you.

The First way of Gold Investing Is To Buy Physical Gold:

You can go to any jewelry store and buy gold coins. You can buy a certain amount of gold and keep it at home. But there are certain advantages and disadvantages of buying physical gold. 

If I talk about the advantages of physical gold, one of its benefits is, It is an investment and you can also use that gold. Because gold is used a lot in India, many people consider it good to wear gold. 

Apart from this, the small disadvantage If you look at gold purely as an investment option. It is very difficult to store physical gold. Someone can steal it, apart from that, there are many ways because of which physical gold is considered difficult to store. After this I will move onto something that is considered the best way to invest in gold.

How To Invest In Gold In India

The Second Way Is Gold ETF or Gold ETF Fund:

So what is Gold ETF and how to invest in Gold ETFSo if I talk about gold ETF, ETFs are Exchange Traded Funds and I have already explained ETF in earlier you can check. ETF's are traded in stock exchange as shares and you need a demat account of any broker for invest in gold ETF. So if you want to invest in gold and if you think that gold will go up in the coming time and you don't want to buy physical gold then you have this option for online investment in gold.
Many investors want their investment to be made in gold. They want gold as an investment option in their portfolio and diversify entire portfolio. To reduce risk but they don't want to keep physical gold at home. For them, gold ETF is a very good option. If you have to invest in gold ETF You have to open your demat account with any broker. There you can search for gold ETF and then invest your money online. Few best gold ETF in india:

  • SBI Gold ETF
  • AXIS Gold ETF 
  • Kotak Gold ETF 
  • HDFC Gold ETF 
  • Reliance ETF Gold Bees

The Third Way To Invest In Gold Is Gold Mutual Funds:

You can invest in gold through gold fund. So what are gold mutual funds, so if you invest in gold mutual funds the money that is pooled. That is invested in gold and if the gold price goes up in the coming time. You get good returns from that mutual fund. If the gold price goes down, then you don't face that much loss. So gold fund can be a good way to invest in gold online.

how to invest in gold in India

The Last and Fourth Gold Investment Option is SGB (Sovereign Gold Bond):

SGB is related to investing in gold about which people don't talk about in a lot of detail. Now you thought what is sovereign gold bond and is sovereign gold bond a good investment?

So sovereign gold bond have been launched in India or you can say it is a government gold scheme through which you can invest in gold and there are many benefits of this. So using sovereign gold bond you can invest in gold and you get a fixed return as well. So let us talk in detail about what is sovereign gold bond and how to invest in this.

Sovereign gold bonds is such a way of investing in which you can invest without taking physical gold. So how can you invest here, and who launches SGB. So if I talk about sovereign gold bonds, then it is launched by the RBI on behalf of the government of India. They are completely safe. The way to invest in this is through your net-banking or your demat account. Here I have to clear one thing that all stock brokers not provide the option to invest in SGB.  

Now the question comes, what is the minimum investment you can make here. So through sovereign gold bond, you can buy a minimum of 1 gram of gold. If 10 grams is for 49000 rupees then 1 gram is for 4900. You can start your investment at 1 gram in sovereign gold bond.


Now the question is what is the benefit of investing in sovereign gold bond scheme. So there are two benefits of investing in sovereign gold bonds.
  • You portfolio was diversified and if gold performs well you get a good return. But on the other side, if gold did not give good returns. What will you do in that case. In that case your capital gets stuck there but in the case of sovereign gold bonds if you invest there, consider you bought 10 grams of gold for 49,000 rupees you invested that today and if tomorrow, that gold goes down to reach Rs 34,000. So you get an annual return of 2.5% on your invested amount in your bank account so this is a fixed return on your invested money and this will be credited once every 6 months in your account. But a small misconception here in people's minds if consider you invested Rs 49,000. In one year it increased to become 53,000 or 60,000. The 2.5% you get, won't be on 53 or 60,000. You will get that on your invested amount.
  • You will get full tax free returns. So if I talk about the fixed return of 2.5% You don't have any TDS on that. The maturity of sovereign gold bond is of 8 years. Which means that you can withdraw your cash after 8 years. And after withdraw it you won't have capital gains, or any form of tax.
But now the question comes that if we have to remove it before time, then what is the way for that. You can withdraw your money after 5 years if you want to but the actual maturity of it is 8 years. You don't have to get the physical delivery of gold, you get a SGB certificate for it or you can also get this in your demat account. So this is a best way to invest in gold and the government is going to launch it in 6 tranches this year.

One more benefit of SGB is, if you invest here, online then You get a discount of Rs 50 per gram. Which means that amount will be reduced from the buying price. The chances of you getting good returns increases. So this was about sovereign gold bonds.

But I would like to tell you the benefits of investing in gold again. The benefit is that If in your overall portfolio, you have invested a little in equity, a little in mutual funds and a little in gold. so that Your overall portfolio can be diversified and if one equity or one mutual fund performs lesser in that case you get good chances of getting returns from gold.

So we write this, so that the right knowledge of investing in gold can reach you. And I have told you about every way to invest in gold. Now you can choose which is the best way for you. If you want to choose physical gold, it is your personal preference you can invest in physical gold. If you want to invest in gold online. Then sovereign gold bond, Gold ETF and gold mutual funds, you can get an exposure in gold.


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