There are many precious metals, however gold is regarded in the highest importance in the realm of investment. Because of a variety of factors like its an abundance of liquidity and a capacity to beat inflation gold is among the most popular investment options in India.

The investment in gold can come in a variety of ways, such as buying gold jewelry, coins bars, gold exchange-traded gold funds, Gold funds Gold bonds, sovereign gold etc.

There are occasions that markets experience a drop in gold prices however, it usually doesn't last for long, and it always follows an impressive upturn. After you've decided to put your money into gold you must decide on the method of investing carefully.

If you're looking to learn more information about Gold Investment plans and other details such as the different ways to invest in gold, ways you can invest your gold investment online, and many more, you're in the right place.

How to invest in Gold Investment Plans for Investment Plans for Gold Investment Plans

Moving on to the most crucial section that deals with "How to invest your money in gold." It is true that there are various traditional and modern kinds of gold investments that are favored by the general public.

In the past the idea was to buy real gold that came in form of coins, jewelry billions or artifacts. Today, the situation has changed and investors now have more options to invest, such as Gold ETF and gold funds.

The Gold ETFs (Exchanged Traded Funds) are similar to purchasing physical gold. The only difference is that you do not purchase the physical gold. There is no need to endure the hassle of storing physical gold; instead, the gold purchased can be kept in Demat (paper) form. In contrast gold funds are concerned with investing in mining companies that mine gold rates in India.

Let's look a little deeper into the differences among the most basic investment methods for gold and Viz.

  • Physical Gold
  • The Gold ETFs (Exchanged traded funds)
  • Gold Mutual funds
  • Sovereign Gold Bonds
  • Digital Gold
Gold Gold ETFs (Exchanged Traded Funds) Funds for Gold Funds
It is necessary to invest in gold that is physically present. A proportionate purchase of gold, but not physically. The investment comes through bullions, as well as the companies that are that are involved in mining gold.
There is no need for a Demat account is required One requires an account with a Demat account to invest There is no requirement for a Demat account is required for investing
No additional fees are imposed apart from the actual gold itself. Gold ETFs also include brokerage and asset management fees. A minimum fee is set to control the funds.
There is always the risk of burglary or theft when you have physical gold in your possession. You are not at risk of being a victim of burglary or theft since you don't own it in physical shape. There is no risk of theft or burglary in this case
You can cut out the hassle of paperwork when making an investment. The paperwork is necessary to invest in ETFs that invest in Gold. Documentation is needed to apply for Gold money.
The fluctuations in the market are correlated to the price of gold. The price of gold directly influences the performance of the Gold ETFs. Gold funds aren't affected by changes in gold price.

What is a Sovereign Gold Bond?

Sovereign Gold Bonds are the most secure way to purchase digital Gold because Reserve Bank of India issues these bonds on behalf of the Government of India with an guaranteed interest rate of 2.50 per cent per annum. They are backed by the grams. They are priced at a an initial unit of 1 Gram.

The maximum amount one can make is 4 kilograms. They have an eight-year tenor with the option of a withdrawal beginning in the fifth year. This is a safe method to invest in gold as you are the owner of gold, but without physical possession.

A few Of the Gold Funds in India

Based on the current market conditions Some of the gold funds you could think about investing in include:

  • Axis Gold Fund
  • Aditya Birla Sun Life Gold Fund
  • Canara Robeco Gold Savings Fund
  • HDFC Gold Fund
  • ICICI Pru Regular Gold Savings Fund

What documents do you require to invest into Gold?

More than more than. 2 lakhs in physical gold investment calls PAN Card. PAN Card, whereas in ETFs it is necessary to establish an account with a brokerage company, and then the opening of a Demat account at the same company. In order to invest into SGBs (Sovereign gold Bonds), KYC required are the required documents for purchasing Physical gold (Aadhar PAN, PAN and Passport or Voter ID).

Why you should consider investing in gold?

If you are a traditional investor, the most crucial criteria is security in return, liquidity, and profit. You should be able to meet all these requirements while buying gold. Some investors view the gold return as highly unpredictable, but it is proven to be a reliable investment in times of uncertainty many investors. Let's look at some of the factors which prove that investing in gold is an investment that can yield a profit:

What ever you think the inflation rate and the return on investment in gold have always been exactly in line with. In essence one could say it as an investment that beats inflation.

Another important reason for gold investment is the liquidity gold provides a great liquidity to investors.

the Bottom Line

Each investment has its own positives and negatives with it. If you're not keen on holding physical gold, then you can look at other options such as ETFs or gold funds, as well as SGBs. Although it is not an investment that is passive as stocks and bonds, it can offer regular income through interest as well as dividends, gold will give you a great liquidity, and also help beat inflation. Evidently, the advantages when investing in gold typically outweigh the drawbacks. In a nutshell, investors who don't require money in the short-term could opt for Sovereign gold bonds, and those who value liquidity, they could consider the gold-related ETFs or funds.