Planning To Buy Gold? Here Are 6 Investment Options Beyond Jewellery
Gold is an integral part of Indian culture, especially during festivals when buying gold is seen as a symbol of prosperity. However, apart from traditional jewelry, there are various other ways to invest in gold today. If you're planning to buy gold this festive season, here are six popular and secure methods to invest in it.
1. Sovereign Gold Bonds (SGB)
Sovereign Gold Bonds (SGB) are issued by the government and offer a unique way to invest in gold with added benefits. Along with the gold value, investors also earn a fixed interest on these bonds. Although SGBs are not available year-round, the government opens a subscription window once or twice a year for new bonds. You can also purchase previously issued SGBs through the secondary market.
2. Digital Gold
Digital gold is a modern and convenient way to buy gold through online platforms. Apps like Paytm, PhonePe, and Google Pay allow you to purchase gold in small amounts, starting from as low as ₹1. This makes it easy to accumulate gold over time, and you can also sell it in parts when needed, without the need for large upfront payments.
3. Gold Coins
Another popular option is buying gold coins, which are available at jewelers, banks, and e-commerce platforms. These coins, ranging from 0.5 grams to 50 grams, come with a BIS hallmark certifying their purity. It’s advisable to buy gold coins in tamper-proof packaging to ensure authenticity and avoid fraud.
4. Gold ETFs (Exchange Traded Funds)
Gold Exchange Traded Funds (ETFs) allow you to invest in gold bullion without physically holding it. These funds, which invest in 99.5% pure gold, are traded on the stock exchange like shares. You can buy or sell units of Gold ETFs easily, making it a secure way to invest in gold without the risk of theft associated with physical gold.
5. Gold Savings Plans
Some jewelers offer gold savings plans where you deposit a fixed amount each month. The jeweler adds a bonus to your deposited amount, which can then be used to purchase gold from their store. This method helps you gradually accumulate enough funds to buy gold without the financial strain of making a large purchase at once.
6. Gold Jewellery
The most traditional way to buy gold is through jewelry. However, it’s important to account for making charges, which vary based on the design and can significantly increase the cost. Always ensure the jewelry is hallmarked, guaranteeing the purity of the gold.
Investing in gold, whether through traditional jewelry or modern alternatives, can be a secure way to protect your wealth. With these six methods, you have a range of options to suit your financial goals and preferences.