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If you’re thinking about investing in gold, it’s important to pick the way that works best for your financial needs and goals, like SGBs, digital gold and ETFs.
Check ways to expand your portfolio with gold.
Gold remains one of the most popular investment options. It has been a symbol of wealth and security for centuries. In India, gold remains popular because it’s easy to buy and sell and is also considered a safe investment. There are various ways to invest in gold, such as purchasing jewellery, coins and bars or opting for more modern methods like gold exchange-traded funds (ETFs), digital gold and sovereign gold bonds (SGBs). When thinking about diversifying your portfolio, it’s important to pick the way best for your financial needs and goals. Here are a few ways to expand your portfolio with gold.
Sovereign Gold Bonds (SGBs): Sovereign gold bonds are issued by the government and backed by physical gold. They make investing in gold easier because you don’t have to worry about keeping the gold safe or the risk of theft. Unlike buying gold in the form of jewellery, which often comes with extra costs like making charges and worries about its purity, SGBs do not have these problems. You don’t have to pay extra fees to make the gold or worry about whether it’s pure. It makes them a more transparent and cost-effective way to invest in gold.
Digital Gold: It offers a convenient and affordable way to invest in gold through online platforms. One of the biggest advantages is its accessibility, as investors can buy as little as one rupee worth of gold. The digital gold you purchase is supported by physical gold, securely stored in vaults by trusted service providers. Another advantage is that it is 24K gold, meaning it is pure gold and certified by the government. It guarantees the gold you buy is high quality, which reduces the chance of fraud. You also get the option to easily exchange your digital gold for physical gold, like coins or bars, whenever you want.
Gold Exchange Traded Funds (ETFs): This provides an easy way for investors to gain exposure to gold without physically owning it. ETFs are a good way to spread out your investments because they give you indirect access to different industries, such as gold mining, manufacturing and transport. One of the main advantages of Gold ETFs is the ability to buy and sell them during market hours, just like trading stocks. ETFs come with certain costs, including brokerage fees and fund management charges.
