5 best ways to buy and invest in gold

About investment in Gold

An investment in gold has given very good return over years. If you see the history, Gold has given the returns as high as 13+times over the last 10 years, hence gold has become a good and best investment option.

There are various ways of investing in gold. Some of the best methods are provided below.

5 best ways to buy and invest in gold

1)      Buy Physical Gold:

One can invest money by directly buying gold ornaments and buying gold bars. There is no risk of counter party and there is low carrying cost. On the negative side, there is risk of loss due to theft, wastage due to wear etc.,

2)      Buy Physical Gold coins:

One can invest money by buying gold coins from authorized dealers or from banks. There is no risk of counter party and there is low carrying cost.

3)      Investing in Gold ETF’s (Exchange traded funds)

  • One can invest directly by buying Gold ETF’s (Gold Exchange Traded Funds).
  • These are the ETF’s which can be purchased through National Stock Exchange (NSE) of India in the electronic form.
  • One needs to have demat account to buy gold in this form.
  • We can buy gold ETF’s as low as 1 Gram and in multiples of 1 Gram
  • These Gold ETF’s are in demat form and no worry like theft
  • There is no wastage like gold ornaments
  • There is no maximum limit to purchase such gold ETF’s
  • The ETF’s are valued every day based on the gold rates of the market.
  • These gold ETF’s buy and sell the Gold and make profit.
  • Some of the best Gold ETF’s are SBI Gold ETF, Reliance Gold ETF, Kotak Gold ETF etc.,
  • This is one of the indirect way to buy gold online

4)      Investing in Mutual Funds which invests in Gold

  • One can also invest directly in another form like buying Mutual Funds which invests only in Gold.
  • These are the Mutual Funds s which can be purchased through the mutual Fund companies which offer these schemes in the electronic form.
  • One may or may not have demat account to buy gold in this form.
  • We can buy gold MF’s in units. The units are measured based on the total value of the mutual funds over the mutual fund units sold by the mutual fund companies which is termed as NAV (Net Asset value).
  • The amount invested in mutual funds can be as low as Rs 500
  • There is no wastage like gold ornaments
  • There is no maximum limit to purchase such gold mutual funds
  • The mutual funds are valued every day.

5) Investing in Gold futures:

This is another way of investing in Gold. However I would not recommend this option unless you are professional Gold Trader.

Readers, what is your thought about investment in Gold ? Do you feel this as best investment option ? Please give your comments

If you found this article is good, share the link in Twitter/Face book. The links are provided below.

Suresh
Myinvestmentideas.com

10 Comments

Add a Comment
  1. I now it is not advisable to invest in gold….because price of gold are stable ….i think it will not more return form now….
    Thank you

  2. hi suresh, I have rs 60000 to invest. I wanna go with gold ETF. How would i invest this money in gold ETF? please guide me….

    1. Krishnanu, You need to have demat account. You can open demat account with any stock broker like ICICI or Fundsindia.com or any other broker. You can buy and sell Gold ETF’s like any other stock. 

  3. Hi Suresh,

    The post was very useful.. I'm a begginner in this and I want to know more about 

    Investing in Mutual Funds which invests in Gold.

    Can u please help.

    1. Hi Precilla, There are mutual fund schemes like Reliance gold mutual funds etc., which invests in companies that dealth with gold. Before you invest in Gold mutual funds, refer this article about Gold ETF’s Vs Gold Mutual funds. You would get some idea.https://myinvestmentideas.com/2013/02/gold-mutual-funds-and-gold-etfs-which-is-the-better-investment-option/

  4. hello sir, iam planing to invest to sbi mf gold exchange as iam doing this first time how much should i invest and how i can maximise my profit.

    thanks

    palwinder singh

    1. Hi Palwinder, There is no hard and fast rule on how much to invest in an ETF. But since the gold rates are falling now, invest thru SIP in gold ETF’s (buying equal units every month) in Gold ETF’s so that cost gets averaged out.

Leave a Reply

Your email address will not be published. Required fields are marked *