Gold Festive Purchase: 5 Ways To Invest In The Yellow Metal, And How To Select
Popular with first-time buyers and experienced investors alike, gold is well-known as an inflation hedge.
The festive season is upon us, with Navratri here and Diwali just a few weeks away. Ahead of Diwali, Dhanteras is a significant occasion for buying gold, as it is believed to invite Goddess Lakshmi’s blessings into the home. Buying gold on that day takes centre stage in Indian households. It symbolises not just tradition, but is also an important investment option.
Popular with first-time buyers and experienced investors alike, gold is well-known as an inflation hedge. But the choice of the proper form of gold must be given close consideration, based on your investment objectives, liquidity requirements and tolerance for risk.
Here Are Five Ways You Can Invest In Gold
1) Gold jewellery: The most conventional type, jewellery is not just an investment but also an asset that can be worn. It comes with making charges and taxes, which can influence returns in case of selling shortly after acquisition.
2) Gold coins and bars: Gold coins and bars may be an option for those wishing to invest in gold without having to pay extra making charges. They come in different weights and purity and can be bought from banks and jewellers.
3) Gold mutual funds and exchange-traded funds (ETFs): Gold mutual funds offer shareholders a means to invest in gold without keeping actual gold. Such funds usually invest in gold ETFs or other instruments connected to gold. As such, these can be an option to diversify your portfolio. Investors can buy and sell these funds on stock exchanges like shares.
4) Digital gold: Digital gold lets you buy gold online. Provided by fintech platforms, it is a convenient and secure method to invest in gold, without fear of theft or charges on making.
5) Gold options: It’s an option contract that provides the holder with the right to buy or sell a fixed quantity of gold within an agreed period at a predetermined price. Investors are charged a premium for this, which is a low-cost method of profiting from the movement of gold prices without actually holding gold.
Documents Needed To Invest In Gold
If you are investing more than Rs 2 lakh in physical gold, your PAN card should be furnished. For Gold ETFs, you must have a trading account with a brokerage firm and a corresponding Demat account.
Gold continues to be a reliable festive investment, as it combines tradition and financial sensibility. With proper choice, it can be a good portfolio inclusion.
