Buying jewellery or investing in gold exchange-traded funds (gold ETFs) is a choice that one is faced with when deciding where to park their funds.
In a social media post, CA Nitin Kaushik decoded which one is the best for you can be a smart option and how it works.
“You don’t ‘own’ gold just because it shines on your wrist. Sometimes, it’s just a luxury expense dressed up as an investment,” CA Kaushik wrote in his post. He further explained the difference between investing in gold jewellery versus investing in a gold ETF.
“Here’s the real breakdown. Jewellery– • Price: ₹1,00,000 • Wastage/Charges: ~₹12,000 (gone forever ) • Flexibility: None – designs & resale are a hassle • Returns: Unpredictable + resale comes with deductions & hidden cuts. Gold ETF — • Price: ₹1,00,000 • Wastage: ZERO • Liquidity: Instant – sell on market hours anytime • Returns: Transparent, market-linked & tax-efficient after 3 years (indexation benefits apply),” he explained.
He then explained the confusion that people have while investing in gold and had some words of advice.
“People confuse cultural gold with capital gold. One is emotional. The other is financial. Tradition is gold. But investing in gold? That’s a wealth strategy. Make your money shine – not just your wrists (sic),” he signed off.
Meanwhile, gold prices have reached near the ₹1 lakh mark amid easing tensions between Iran and Israel and reduced demand for safe-haven assets.
This week, gold started with a modest upside on escalating Middle East geopolitics but gave up gains on Tuesday after US President Donald Trump announced that both nations had agreed to a complete ceasefire.
He added that Iran would begin the truce immediately, followed by Israel. The yellow metal also hit an all-time high last week on MCX after Israel launched military operations targeting Iran’s nuclear power plant sites.