Thinking of investing in gold? Know what to keep in mind before investing

When it comes to investing in gold, it does not mean jewellery. If you have bought jewellery, it does not mean that you have invested in gold.

Publish Date – 5:22 pm, Tue, 22 March 22

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People’s love for gold in their country is well known. India is the world’s second largest gold importer and consumer. Gold is also attractive for investment. When inflation or uncertainty in the economy increases, investors are attracted towards safe investments and the price of gold increases today. If you have not yet included gold in your portfolio, then let us know about the things that are important to keep in mind before starting investment in gold.

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Santosh Navlani, COO, ET Money, says that if we look at history, in the last 12-15 years, gold has performed only when there has been some kind of global crisis.  After the recession of 2008, there was a rise in gold for a few years.  After that it remained sluggish for a few years.  In 2019, it accelerated back due to the US-China trade war, in 2020 Gold gave a return of about 30 percent due to Corona.  Did not give returns in 2021 and due to Ukraine Crisis in 2022, gold is seeing a rise again.

Santosh Navlani, COO, ET Money, says that if we look at history, in the last 12-15 years, gold has performed only when there has been some kind of global crisis. After the recession of 2008, there was a rise in gold for a few years. After that it remained sluggish for a few years. In 2019, it accelerated back due to the US-China trade war, in 2020 Gold gave a return of about 30 percent due to Corona. Did not give returns in 2021 and due to Ukraine Crisis in 2022, gold is seeing a rise again.

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When it comes to investing in gold, it does not mean jewellery.  If you have bought jewellery, it does not mean that you have invested in gold.  Financial experts recommend that you should have at least 5-10 per cent gold in your portfolio.  This investment can be done in Digital Gold, Sovereign Gold and Gold ETFs.

When it comes to investing in gold, it does not mean jewellery. If you have bought jewellery, it does not mean that you have invested in gold. Financial experts recommend that you should have at least 5-10 per cent gold in your portfolio. This investment can be done in Digital Gold, Sovereign Gold and Gold ETFs.

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Digital Gold: Talking about digital gold, you can buy online in it.  In this online shopping as well as selling can be done.  In digital gold, the investor buys pure gold of 24 carats.  In this, gold is stored in the insured wallet.  Investing in digital gold can be started with as little as Rs.  By purchasing digital gold, the buyer gets a personal security wallet which can also be insured.  You can redeem it in cash or in physical gold at any time.

Digital Gold: Talking about digital gold, you can buy online in it. In this online shopping as well as selling can be done. In digital gold, the investor buys pure gold of 24 carats. In this, gold is stored in the insured wallet. Investing in digital gold can be started with as little as Rs. By purchasing digital gold, the buyer gets a personal security wallet which can also be insured. You can redeem it in cash or in physical gold at any time.

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Gold ETF: If you want to invest in paper gold, then the best way for that is Gold ETF.  An online stockbroker is required to invest in Gold ETFs.  It can be bought like a share.  Its purchase is done with the help of exchange.  Gold ETFs are traded throughout the day, due to which price fluctuations are seen.  Gold ETFs can be easily bought and sold with the help of exchanges.  A gold ETF means 1 gram of gold.  In this electronic gold is deposited in your demat account.  Its specialty is that there is complete transparency on the stock exchange regarding the price of gold.  Apart from this, there is no wealth tax on gold ETFs.  Investment can be started with 1 gram of gold or even one unit.

Gold ETF: If you want to invest in paper gold, then the best way for that is Gold ETF. An online stockbroker is required to invest in Gold ETFs. It can be bought like a share. Its purchase is done with the help of exchange. Gold ETFs are traded throughout the day, due to which price fluctuations are seen. Gold ETFs can be easily bought and sold with the help of exchanges. A gold ETF means 1 gram of gold. In this electronic gold is deposited in your demat account. Its specialty is that there is complete transparency on the stock exchange regarding the price of gold. Apart from this, there is no wealth tax on gold ETFs. Investment can be started with 1 gram of gold or even one unit.

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Sovereign Gold Bond: Sovereign Gold Bond is issued by the Reserve Bank from time to time.  In Sovereign Gold Bond, a person can buy a minimum of 1 gram and a maximum of 4 kg of gold in a financial year.  Investors of Sovereign Gold Bonds will get interest at the rate of 2.5 per cent per annum.  This interest will be available on half yearly basis.  No capital gains tax will be levied on redemption.  It can also be used as collateral for the loan.  Gold bond is not physical gold, so there is no problem in its storage.  It can be traded on exchanges and unlike physical gold, it does not attract any GST and making charges.  Gold Bond gives complete guarantee of purity of gold.  This bond is for 8 years.  Talking about the tax, there is no capital gains tax on the amount received from the bond after 8 years.

Sovereign Gold Bond: Sovereign Gold Bond is issued by the Reserve Bank from time to time. In Sovereign Gold Bond, a person can buy a minimum of 1 gram and a maximum of 4 kg of gold in a financial year. Investors of Sovereign Gold Bonds will get interest at the rate of 2.5 per cent per annum. This interest will be available on half yearly basis. No capital gains tax will be levied on redemption. It can also be used as collateral for the loan. Gold bond is not physical gold, so there is no problem in its storage. It can be traded on exchanges and unlike physical gold, it does not attract any GST and making charges. Gold Bond gives complete guarantee of purity of gold. This bond is for 8 years. Talking about the tax, there is no capital gains tax on the amount received from the bond after 8 years.

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