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Some Tips For Gold Investment In India

Investing blindly is not considered t be wise. In the case of a Gold loan, a complete market analysis is mandated. In this blog, we will read about the various factors related to purchasing of a gold loan. Also, learn about the comparison between Gold ETFs Vs. Gold Mutual Funds.



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The most common and preferred investment in India is gold. This has many reasons like safety, easy to sell, highly liquid, and an inflation-beating capacity. This can be very beneficial to use in financial emergencies. The basic two ways of owning gold are paper and physical. The physical form of gold includes gold coins, gold bars, and jewelry. The two ways to purchase paper gold are Exchange-Traded Funds (ETFs) and Sovereign Gold Bonds (SGBs). Also, the gold coins can be delivered at our homes for many e-commerce websites, which saves your time. Before making an investment in the gold loan, complete research such as gold loan rate, quality, and value has to be done.

Here are some tips for gold investment in India:

 Paper gold is better than physical gold: Many people feel safe in buying physical gold in India as they think it’s safer than paper gold. But physical gold comes with its own set of problems such as safekeeping and storage. Making charges, locker charges, and value-added taxes are reduced if you buy paper gold, which is transferred easily and safely.

Know how much to invest: Normally, it is advised to have 5% of your investment to be in gold, which will be good for your portfolio. So check upon how much you want to invest. Some financial experts say that if you have a regular income, then you should not invest more than 2%-5% in gold, whereas people with irregular income should even invest more than 10%.

Make early investments: Gold prices keep on increasing, and this inflation won’t stop, so it will only increase your investments if you want to purchase later, then you will have to purchase the same weight of gold at a higher price than now. You can invest in gold at the best price if you check upon its prices regularly.

Be alert of scams: Before making such a big investment, check the quality and make sure you make a safe transaction as there have been cases on counterfeit gold coins.

Wait for returns: As the rate of gold tends to rise, so the longer you will keep your investments, the more you will earn.

Types of Gold Investments

  • Buying Jewelry
  • Purchasing Gold Coins
  • Purchasing Gold Bars
  • Gold ETF ( Exchange Traded Fund)
  • Gold Fund of Funds
  • Equity-based Gold Funds

Gold ETFs Vs. Gold Mutual Funds

A Demat account has to be opened in case of Gold ETFs for which some broking charges have to be paid. Even in Gold Mutual Funds, you have to pay some additional charges.

In case of a small purchase, a gold mutual fund is better. In case of a large quantity, with the help in negotiating brokerage, ETF becomes suitable.

How To Invest In Gold Market In India?

Be sure and check on the different forms of metal pieces offered, before investment.

The choice of the type of gold you want is also very important, like physical or paper gold. Electronic gold is always better due to its safety and no charges to store.

To earn a large amount from your investment, keep a tap on the prices of gold and purchase as soon as the price drops.

The percentage of investment in gold is crucial as you have to take a risk on the amount you are investing, as the rate is unpredictable.

You should hold your investments for a longer point of time to earn a higher amount of profits.

Check out the quality of the gold properly and beware of the frauds happening.

Try to choose different investments plan. Do not invest in one plan fully. Take your decisions patiently and wisely.

Gold Investment In India – Good Or Bad?

In today’s, time investing in gold is considered as a wise option. You should keep a check on the prices of gold and should not solely invest in it. You should make a wise decision and do proper research before investing in gold.

I work as a finacial advisor. I hold expertise in the field of finance and investment. ON the other hand, I also love to write and blog related to the sector of finance.