Gold as an investment
Gold is one of the most preferred investment in India. Gold investment can be done by buying jewellery, coins, bars, gold exchange traded funds, gold funds sovereign gold scheme, etc.
Basic gold investment methodologies:
- Physical gold
- Gold ETFs
- Gold mutual funds
- Sovereign gold bonds
- Digital gold
Gold ETFs: Gold ETFs are a type of mutual fund that tracks the price of gold. When you buy a gold ETF, you are essentially buying a small piece of a large pool of gold.
Gold mutual funds: Gold mutual funds are similar to gold ETFs, but they are managed by a fund manager. This means that the fund manager will actively buy and sell gold in order to try to generate returns for investors.
Sovereign gold bonds: Sovereign gold bonds are government-issued bonds that are backed by gold. When you buy a sovereign gold bond, you are essentially lending money to the government and receiving gold in return. Sovereign gold bonds are a safe and liquid investment, and they offer the potential for capital gains. However, sovereign gold bonds may not track the price of gold perfectly.
Digital gold: Digital gold is a type of gold investment that is stored in a digital form. You can buy digital gold through a variety of online platforms.
