From Coins To ETFs: Modern Ways To Buy Gold This Dhanteras
There are several options you can choose from for buying gold.
Dhanteras signals the start of Diwali festivities in India and is cherished by countless families as a day symbolising abundance, fortune, and prosperity. Devotees honour Goddess Lakshmi and Lord Dhanvantari, often by acquiring gold ornaments or coins as a means to welcome auspiciousness and good fortune into their homes.
Among the many customs observed during this period, buying gold remains one of the most enduring and significant traditions. Here are some ways you can buy gold this festive season.
Five Ways To Buy Gold This Dhanteras
1. Physical Gold
You can buy gold coins and jewellery. When buying the yellow metal, it is crucial to select jewellery or coins bearing the BIS hallmark.
It assures the purity of the gold. Making charges typically range from 5% to 20%. Choosing simpler styles or opting for coins can significantly lower these additional costs.
2. Digital Gold
Digital gold presents a simple and convenient way to invest in gold in small amounts. The gold is securely held by the platform until you decide to transform it into physical form or sell it. This method offers investors a flexible alternative without the hassle of managing physical storage.
3. Gold ETFs
Gold exchange-traded funds (ETFs) invest directly in physical gold, allowing investors to benefit from movements in gold prices without holding the metal itself. These funds can be traded on stock exchanges just like shares, provided the investor has a demat account. They offer excellent liquidity.
Gold ETFs can only be bought or sold during market hours. Additionally, they are passively managed with low expense ratios, making them a cost-effective investment option.
4. Gold Mutual Funds
Gold mutual funds invest in units of gold ETFs. They offer exposure to pure gold through a fund-of-funds approach. Investors can either make a lump sum contribution or opt for a systematic investment plan (SIP) to build their holdings gradually. These funds are particularly suitable for those new to investing who wish to gain exposure to gold without purchasing physical metal directly.
5. Sovereign Gold Bonds (SGBs)
Sovereign Gold Bonds (SGBs) are government securities issued through the Reserve Bank of India(RBI). They are backed by gold of 999 purity. They have an eight-year maturity, with the option for early redemption after five years from the issue date. Currently, new investments in SGBs are closed and these bonds can only be acquired via the secondary market.
To conclude, buying gold during Dhanteras is not merely a ritual but a symbol of the strong ties to prosperity and protection. Whether acquiring physical gold or opting for modern avenues like digital gold, the underlying meaning remains unchanged.
