You can invest in physical gold by purchasing gold coins or biscuits from jewelers, banks, online stores, NBFCs etc.
Gold has always been a great asset in India. Along with the financial value of gold, it also has a different emotional and social value. This is an important reason to keep it in physical form in the form of jewelery, coins or ciscuits. However, in terms of investment, you can invest money in gold in different ways. Come, let’s see about them here. You can invest in physical gold by purchasing gold coins or biscuits from
jewelers, banks, online stores, NBFCs etc. Gold coins are usually of standard denominations like 5 and 10 grams. While the biscuits (bars) are of 20 grams. They have 24 carat purity. They come with hallmarks as per BIS standard. This is the traditional way of investing in gold. Investors usually buy gold on auspicious days of the year. With this, they gather gold over time. This link https://www.indiangoldcoin.com/en/index-2/ will give you information about the purchase of gold coins.
Sovereign Gold Bond (SGB)
The government issues Sovereign Gold Bond (SGB) at different times. Investors can subscribe to SGB whenever its issue is issued. Investors can invest in denominations of 1 gram. On the allotment, they are given a Gold Bond Certificate. At the time of cashing, the investor gets the value of gold. Its rate is fixed on the average closing price of the last three days. The interest is paid to the investor at the pre-determined rate during the bond period. When the issue of SGB opens, investors can apply in the bank’s branch, post office, authorized stock exchanges directly or through their agents.
Gold can also be invested through Gold Exchange Traded Fund (ETF). Gold ETF units are listed on the stock exchange. You can buy these units from there. Their value is on the lines of gold prices. To invest in a Gold ETF, you must have a demat and trading account.
What to keep in mind?
– Making a charge with purchasing a physical gold coin.
Experienced investors can invest in gold through commodity exchanges using gold futures and options.
Contents of this page courtesy the Center for Investment Education and Learning (CIEL). Contribution of Girija Gadre, Aarti Bhargava and Labdi Mehta.