5 Ways to Invest in Gold in 2021
Published On Jun 01, 2021 12:00 PM By Kanika Wadhwa
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According to the opinions of both an expert and a layman, gold is said to be one of the most solid forms of investment. In India, without any second thoughts, it is one of the most considered to be one of the most favourite investment avenues. Gold investments can happen generally in 2 different forms i.e. in the physical form via gold plates and jewelry or you can even purchase it in the paper form via traded funds or bonds at the prevailing rate.
5 Different Ways to Invest in Gold in 2021
There are various different ways through which an individual can invest in Gold in 2021. Highlighted below are the top 5 ways:
1. Gold Stocks
In India, various investors have an alternative choice to purchase and trade in distinct gold stocks provided by various companies that are active producers and developers of gold deposits in the nation. If the investors purchase through this way, then they can avoid paying the premium in case they would have bought the gold directly. Moreover, the value of gold shares tends to increase with time, thereby giving good amounts of profit.
2. Digital Gold
It is a mode of investment where an investor can invest in physical gold via online platforms. For instance, ‘GoldRush’ is a type of digital gold that the Stock Holding Corporation of India offers to their investors via their website and Me-Gold is a kind of investment option for digital gold offered by Motilal Oswal.
3. Physical Gold
There are different sets of benefits if you decide to invest in gold specifically if you decide to invest it in the physical form. However, it comes forward with its own sets of concerns including high making, purchasing cost, outdated designs and safety. The making charges in India on the physical form of gold like jewellery generally swings between 14 and 25 percent of the total ornament cost. Moreover, these charges cannot be later recovered.
4. Sovereign Gold Bonds
These gold bonds are issued by the Government of India several times. Once the issue of SGBs is announced, the investors can choose to subscribe to them at any time. Investors after the allotment can invest in gold bond certificates in denominations of 1gm. They get the gold value during redemption depending on the simple average closing cost for the past 3 business days. During the bond period, a fixed and pre-decided interest rate is received by the investors. On the launch of the SBG issue, investors can choose to apply directly or via post offices, bank branches, SCHIL or authorized stock exchanges.
5. Gold Mutual Funds
These are those investment vehicles that primarily invest in gold ETFs and other similar assets. Gold mutual funds don't directly invest in physical gold, they indirectly do so via Gold ETFs or Exchange Traded Funds. Investment in gold funds is just as simple as when it comes to investment in mutual funds. To start with investment, you do not require a huge amount of money. Investment can be done with even Rs 100 per month, and with the rise in income, you can consider increasing the investment.
Investment in gold commodities can turn out to be a great option. You can consider the afore-mentioned options when it comes to best gold investment options in 2021. However, the final decision is totally dependent upon your individual needs, so thoroughly research and make a wise decision at the time of planning to invest in several gold commodities.
Also read:- Tips to Invest in Gold
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.