Producer: Priyanka Das Editor: Sujata Singh
Many people choose to invest in tangible gold during the festive season by purchasing gold coins and jewelry. It is advised to select 22K carat gold jewelry. One can also purchase 24K gold coins, which are the finest type of gold.
Investing in gold can now be accomplished digitally, eliminating the requirement for actual possession of the precious metal. The allure of digital gold lies in the fact that it is 24k gold that has been verified by government-approved organizations to be 99.5% pure.
Gold ETFs, also known as Exchange-traded funds, are financial instruments whose prices are intended to mimic those of real gold on local markets. These passive investments are supported by high-purity gold bullion and are correlated with the value of gold.
Gold funds are the ideal choice if you want to invest in digital gold, which is reliant on the stock market. Customs duty, manufacturing fee, and GST are not applicable. Investing in gold funds is similar to investing in exchange-traded funds (ETFs).
An alternative to owning actual gold is to hold SGBs, which are government securities valued in grams of gold. In exchange for cash, investors pay the issue price and cash redemptions at maturity for these bonds, which are issued by the Reserve Bank on behalf of the Indian government.