In the last one year, the prices of gold have made a tremendous jump. On 11 September 2024, 24 carat gold was Rs 73,200 per 10 grams, which has now increased to Rs 1,12,500 per 10 grams. Meaning about 54% rose in a year. In such a situation, every investor is wondering that it would be better to invest physical gold (eg jewelery or coin), or Gold ETF?
Physical gold
Buying gold jewelery and coins in India has been a part of investment and cultural needs for centuries. There is always a demand for gold on weddings, festivals and special occasions. Gold in the form of jewelery is not only related to investment but also social recognition and emotions. But it is worried about making charge and purity. Also, the investor has to bear the expenses of keeping gold safe. The risk of theft and loss is also always in physical gold.
Gold etf
Gold ETF is a new and convenient way of investing in the exchange traded funds, gold. It works like a stock market, where you can buy or sell it anytime through a demat account. There is no need to keep gold in physical form, which ends the anxiety of theft and purity. You can also start investing in gold ETF than low amount.
However, due to the ETF market connected with the market, it may affect the market volatility. Also, returns may be affected slightly due to fund management fees. But if you want to invest gold without hassle, then gold ETF proves better.
Another way to invest in gold
Apart from physical gold and ETF, there are many other options for investment in gold. Gold mutual funds indirectly invest in Gold ETF and are also considered safe. Apart from this, Sovereign Gold Bonds (SGBs) are also a popular option, which is released by the government and you also get interest on them.
Keep these things in mind before investing
It is necessary to take the decision to invest amidst gold record high expressions. If you want emotional and traditional investment, physical gold is a better option. At the same time, if you want an investment with convenient, safe and low hassle, then Gold ETF is suitable for you. Decide keeping in mind your investment need, target and risk capacity. Remember that there is a possibility of damage due to market fluctuations in gold. Therefore, investing without a plan can be risky.
Disclaimer: This article is only for information and should not be considered as an investment advice in any way. TV9 India suggests its readers and spectators to consult their financial advisors before taking any decision related to money.