Dhanteras 2022: Today is Dhanteras. This day of the year is considered to be the most auspicious and lucky day for shopping. On this day, people buy gold, silver etc. for Diwali worship. You too must have started preparations for shopping for Dhanteras and Diwali. Although we buy many things on Diwali, but buying gold on Dhanteras is considered the most auspicious. Gold is also considered a safe investment for future security. That is why traditionally we buy gold or silver coins or ornaments on the day of Diwali.
From the point of view of investment, jewelry is not considered to be a much better tool. This is because when you buy a piece of jewelry, it includes the cost of making it. But at the time of sale, only the original price is paid by melting the gold. On the other hand, if you buy a gold coin from a bank or online store, then making is also involved in it. Secondly, the bank does not buy back this gold coin from you. Also, there is a security problem with gold jewellery. There is a fear of theft in the house, while you have to pay a hefty fee to open the locker in the bank. In today’s digital age, you have many more options for investing in gold. Which are safe as well as beneficial.
gold investment options
The most direct way to invest in gold is to buy gold directly. You can buy gold bars, coins or jewellery. Gold coins or bars are more attractive for investment. Apart from this, one can also invest in Gold ETF, E-Gold, Gold Mutual Fund (Gold MF), Gold Traded Fund, Gold Coin Scheme, Gold Options and Futures, Gold Coin Scheme and Sovereign Gold Bonds (SGB).
Like mutual funds, units of gold ETFs can be bought or sold through a demat account. Gold ETFs contain gold of 99.9 per cent purity, so investors do not have to worry about quality. Apart from this, by investing in gold ETFs, there is no risk of gold theft. Also, a small amount can also be invested in Gold ETFs.
The National Spot Exchange has given investors the option to buy many commodities, including gold, in electronic form. E-Gold can be bought and sold from 10 am to 11:30 pm. 1 unit of e-gold is equal to 1 gram of gold. To invest in e-gold, it is necessary to have a demat account.
Gold funds are also run by fund houses like mutual funds. Investors do not need to have a demat account to invest in gold funds. Under Fund of Funds, investors can invest in such mutual funds, whose capital is invested in gold ETFs.
Gold coins can be purchased from jewellers, banks, non-banking financial companies and e-commerce websites. The government has also launched special gold coins. These have the Ashok Chakra on one side and the picture of Mahatma Gandhi on the other. These coins are available in 5 and 10 grams. Gold bars come in 20 grams. Indian gold coins and bars come in 24 carats. They are hallmarked as per BIS standard. These coins are distributed through registered MMTC outlets, bank branches and post offices.
There are two types of Gold or Jewelery Saving Schemes. One allows you to deposit a fixed amount every month for a fixed period. At the end of this period you can buy gold equivalent to the deposited value. This includes the bonus amount.
This is another option to buy paper gold. The government issues them. These are not available for purchase all the time. Instead, the government opens the window at short notice to buy them. Often this window opens in 2-3 months. It remains open for a week, during which time there is an opportunity to buy SGB.
Now you can buy gold coins, bars and jewelery online. ‘Digital Gold’ is being offered on Paytm’s mobile wallet. Stock Holding Corporation of India is offering ‘Goldrush’ on its website. Motilal Oswal has launched Mi-Gold. All these are being offered in collaboration with MMTC-PAMP. MMTC-PAMP is a joint venture between public sector MMTC and Switzerland’s PAMP.
The initial cost of buying physical gold in the form of bars or coins is around 10 per cent. It is even more so for jewellery. SGB and Gold ETFs are cost-effective. There is no entry cost in SGB. SGB is beneficial for those who want to invest in gold for long term. The reason is that their maturity is after 8 years. However, the lock-in period ends in 5 years. However, gold ETFs have better liquidity than SGBs.
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