Gold prices crossed 1 lakh on 22 April. In Delhi, 24 carat gold rose by Rs 1,650 per 10 grams to Rs 99,800 per 10 grams. The price crossed Rs 1 lakh per 10 grams on including GST. On the other hand, gold futures in Commodity Exchange MCX also crossed Rs 1 lakh per 10 grams. Experts say the gold index has fallen to a three -year low. This has given gold support. Gold prices are expected to continue. The question is, what is the best way to invest in gold?
You can invest in gold sitting at home. Gold ETF (Gold ETF) Your first option is to invest in gold. Gold ETF tracks the prices of physical gold. This means that the price of ETF unit is based on gold prices. Gold ETF scheme invests in physical gold. 1 unit of gold ETF is equal to the price of one gram of gold. Gold ETF scheme is listed on the stock exchange. Therefore, there is no problem of liquidity. You have to keep in mind that since Gold ETF scheme tracks the prices of physical gold, which affects the ups and downs of gold on its units.
The second option for investment in gold is the gold scheme of mutual funds. This is a gold scheme of mutual fund asset management companies. This gold invests investors’ money in ETF. This gives the benefit of rise in gold prices to investors of gold mutual funds. Gold mutual funds can be invested with SIP. It is helpful in making a large investment in gold in the long term. Since, it is an active scheme, which may exceed its return of gold in the long term. There is also no problem of liquidity in this.
Physical gold
There has been a tradition of investing in physical gold in India. However, most of the investment is on the wedding occasion. The family gives gold jewelery to sons and daughters on the occasion of marriage. Therefore, the demand for physical gold in India is very high. You can do physical gold from branded gold companies. You can buy gold jewelery, gold coin, gold bar etc. However, keeping them safe is a big challenge.
The Sovereign Gold Bond (SGB) began in 2025. Since then, the government has released 67 installments. SGBs are listed in BSE and NSE. These can be purchased through stock exchanges. However, a demat account is necessary for this. Since, the government has not introduced a new installment of SGB since February last year, now there is now the option to buy it only from stock exchanges. It is said that the government is not interested in releasing a new installment of SGB. SGB matures in 8 years. Money can be withdrawn from it after 5 years from the date of issue.