Everything You Need to Know before Investing In Gold

Investing in Gold

If you are willing to invest in metal like gold in India, You may have so many options. First and foremost let us discuss what all the documents required before you start investing in gold. Tax liability and many more things you wanted to know about gold investments in India.

Documents Requires to Invest in Gold

If you are investing or willing to invest in any of the physical form of gold like gold bars, jewellery and gold coins than if it cross the limit of rupees 2 lakhs, the very first document you need is PAN card. If you are wishing to invest in gold ETFs, you require to open account with any of the brokerage firm in India as well as a demat account.

How You Can Buy Real Gold, Sovereign Gold Bonds and Gold ETFs

Buying physical gold in India is so simple you can buy from any jewellers shop but you require a PAN card in case of you are purchasing the gold with value of 2 lakhs and above. If you are going to invest in gold we suggest you not to purchase gold jewellery instead purchase gold coins. Reasons we are suggesting you not to purchase gold jewellery because it has making charges which cannot be recovered at the time of selling jewellery back.

Gold ETFs is the best options to buy if you want to invest in gold because you have not to worry about storage, theft and gold ETFs can be sold easily. The best part of gold ETFs is it tracks gold prices. Jewellers keeps their margin while selling gold jewellery.

To purchase gold ETFs you just need to tell your investing agent to buy it after successfully opening brokering account. There are so many registered gold ETFs like VanEck Merk Gold Trust (OUNZ. OUNZ.) Goldman Sachs STFs etc. Buying sovereign gold is as simple as you buy listed shares.

Reasons to Purchase Gold ETFs and Sovereign Gold Bonds

If you buy physical form of gold like jewellery, gold coins etc. there may be chance of theft but in case of gold ETFs and sovereign gold bonds there is no chance for theft and you have not to worry about the storage.

There are some charges on gold jewellery like making charges and same way gold ETFs has expense ratio but there is no charges on sovereign gold bonds. When you redeem you sovereign gold bonds you will not have to pay taxes and it gives you interest of 2.5 percent on semi-annually. Although gold ETFs has their own benefits but not as much as sovereign gold bond so we suggest the best is to invest in sovereign gold bonds instead gold ETFs and physical gold.

You may Like to Read: Is E-Gold a Better Option for Investors than Gold ETFs

Why You Should Exactly Buy Gold

When you decided to invest in metals like gold there might be a question that why you should invest in gold. Let’s discuss that in details why you should purchase gold consider that you have invested your all money in gold considering it as dead investment. As we all know what happened in 2008 during share market crisis, gold rate almost doubled in 3 years and now three and half time since 2008.

Accounting to analyst one should invest 10 percent of their money in gold by considering it as dead investment.

What is the Different in 22 & 24 Carats Gold?

If you are new to gold investments, you must have understating of what is all about 22 & 24 carats gold. When we say 24 carats gold that means it is almost 100 (99.99) percent pure gold, while 22 carats gold is 91.6 percent pure which used to make jewellery. While buying gold coins you must check that the coins is 24 carats gold. We have suggested earlier that gold ETFs and sovereign are the best option if you are investing your money in gold.

Factors that Affect Gold Prices in India

If you are new to gold investing you must understand the factors that may affects the gold prices or influence gold rate in India. Here are the few of possible reasons to changes in gold rate in India.

  • US Fed interest rates
  • Geo political tensions
  • Buying and selling demand in global market
  • Rupees movement against dollar

The Bottom Line

If you are up to invest in gold better do a market analysis and deep research before investing in gold and decide which form of gold can be best to invest in. There is many more options to invest in gold. Invest wisely in order to get benefits from your investment of you hard earned money.


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