There are 2 forms one can start investing in Gold
- Digital Gold (#SGB, #mutualfunds , ETFs, Mining funds)
- Physical Gold (Gold coins, bars)
I am not considering jewelry ornaments as an investment due to various charges & reduced purity of Gold (not 24 ckt)
2/n
- Digital Gold (#SGB, #mutualfunds , ETFs, Mining funds)
- Physical Gold (Gold coins, bars)
I am not considering jewelry ornaments as an investment due to various charges & reduced purity of Gold (not 24 ckt)
2/n
Option 1 - ETFs
ETFs help investor to buy a proportionate value of gold in the digital form
Pros:
Changes with the value of gold
Easily tradable - Buy/Sell online
Can invest in small amounts
Cons:
Some fee is associated for the fund manager
Need Demat account to invest
3/n
ETFs help investor to buy a proportionate value of gold in the digital form
Pros:
Changes with the value of gold
Easily tradable - Buy/Sell online
Can invest in small amounts
Cons:
Some fee is associated for the fund manager
Need Demat account to invest
3/n
Option 2 : SGB
Sovereign Gold Bonds are one the safest way to buy digital Gold as issued by the RBI/GOI
Pros:
Price changes with value of gold
Can Invest & trade online
Hypothecated for taking loans
Interest of 2.50%/annum
Cons:
Min investment is 1 gm
Max is 4 kg/person
4/n
Sovereign Gold Bonds are one the safest way to buy digital Gold as issued by the RBI/GOI
Pros:
Price changes with value of gold
Can Invest & trade online
Hypothecated for taking loans
Interest of 2.50%/annum
Cons:
Min investment is 1 gm
Max is 4 kg/person
4/n
Option 3:
Gold Mutual Funds
Like ETFs, gold mutual funds offer flexibility to buy value of gold online & sell online. You do not own the gold, but you can get similar returns of physical gold.
Benefit of Gold mutual funds is it offers SIP investment as low as 500 rupees
5/n
Gold Mutual Funds
Like ETFs, gold mutual funds offer flexibility to buy value of gold online & sell online. You do not own the gold, but you can get similar returns of physical gold.
Benefit of Gold mutual funds is it offers SIP investment as low as 500 rupees
5/n
Option 4:
Physical Gold
Gold bars & coins have always been dearest option for traditional Indian households
One way of investing is by buying them during online sales through e-commerce sites
With bank discounts etc. one can get 200-400 discount/gm from the market price
6/n
Physical Gold
Gold bars & coins have always been dearest option for traditional Indian households
One way of investing is by buying them during online sales through e-commerce sites
With bank discounts etc. one can get 200-400 discount/gm from the market price
6/n
Option 4:
Physical Gold
Pros:
No additional charges - only the gold price
No Demat account is needed
Hypothecated for taking loans
Cons:
Need to check and verify quality
Risk of theft
7/n
Physical Gold
Pros:
No additional charges - only the gold price
No Demat account is needed
Hypothecated for taking loans
Cons:
Need to check and verify quality
Risk of theft
7/n
Option 5:
Gold Mining funds
These are some what new & relatively different form of investing. Often gold mining value co-relates to the price of actual gold. If we cannot invest directly into mines like that, one can use the mutual funds to start investing from Rs. 1000
8/n
Gold Mining funds
These are some what new & relatively different form of investing. Often gold mining value co-relates to the price of actual gold. If we cannot invest directly into mines like that, one can use the mutual funds to start investing from Rs. 1000
8/n
Investing has its own risks. Please do your analysis before investing.
Historically, Gold has always been a save haven, an excellent diversification option as returns are above inflation in long term
PLEASE SHARE IF YOU LIKE THE THREAD
9/n
Historically, Gold has always been a save haven, an excellent diversification option as returns are above inflation in long term
PLEASE SHARE IF YOU LIKE THE THREAD
9/n
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