There are many options for investing in gold
Investors can invest through solid gold, ETFs, gold bonds or digital gold. Each of these has its own unique characteristics regarding investment.
The trend of decline in the stock market continues continuously and in the month of May itself, the market has broken 7 percent so far and with this, once again the confusion of investors has started increasing as to where to invest their money. According to the report of Axis Bank, in order to avoid volatility in the markets, investors have to take some part of their investment as security.Security) and some part gold ,Gold), according to the report, investing 15 percent of your total investment in gold is the right move. Now the question arises that if you want to invest in gold, then how to invest money so that maximum benefit of investment can be obtained. Today we tell you how many ways you can invest in gold in the country. Generally investing in gold can be divided into three parts, which include solid gold, paper gold and digital gold, know what are the advantages and disadvantages of these options.
Solid Gold – Jewellery, Coins or Bars
Solid gold is the most common way of investing in gold in India, it includes jewellery, gold coins and bars etc. The biggest advantage of investing in solid gold is that the jewelery or coins are directly received by the customer. Because of this, people have more trust in it. Solid gold can be kept by the customer, and can be used according to his choice. These can be worn as jewelery in weddings and celebrations. At the same time, banks also offer loans on these when needed. At the same time, the customer can sell it anytime according to his convenience. However, they are not that attractive in terms of investment because first of all the jeweler charges making charges on them which can be very high, and are not refundable on cashing. Along with this, there is also the fear of their being stolen or lost. The purity of gold also has its issue. At the same time, cashing it is not an easy process. Market experts advise that if you want to invest in gold, then investors should first look at other available options, then invest money in jewelery based on the need.
Paper gold is that method of investment in which you get gold only on paper, although the return is decided on the basis of the price of gold. That is, you do not get gold but you get all the benefits associated with investing in pure gold. This includes Gold Exchange Traded Funds and Sovereign Gold Bonds. Market experts trust it more in terms of investing in gold. If you do not need jewelry in the house or want to add gold for your kids or want to take advantage of gold rush then you can use this option. In this method, you avoid making changes and there is no tension of gold being lost or stolen. Through ETFs, you can take advantage of the rapid changes in gold prices, while with the help of Sovereign Gold Bonds, you can take advantage of a fixed interest along with the increase in gold prices over a long period of time. On the other hand, if you look at their disadvantages, then you will not be able to use them like solid gold. On the other hand, in bonds, you have to keep the money for a certain time.
Digital Gold is a combination of Solid Gold and Paper Gold. Many platforms like Google Pay are offering the option of digital gold. Digital Gold is perfect for those who want to invest in Gold with a very small amount. And want to buy and sell according to your own. In Digital Gold, you get the facility to buy and sell gold. At the same time, after reaching a certain quantity, there is also an option to get solid gold in the form of coins or bars. Digital gold does not have to pay making charges, while there is no fear of gold being stolen or lost. At the same time, you can buy gold even with a very small amount. However, in digital gold, the company levies some of its charges, due to which the sale price remains 3 to 6 percent less than the purchase price at the same time. That is, in terms of returns, digital gold is not as profitable as alternatives like gold bonds.. That is, it is clear that if you are not able to invest in lump sum and you want to add a little bit of gold with a small amount, then your Digital gold will prove to be effective for this.