Gold has been used as a currency and a symbol of wealth since ancient times. It holds both traditional as well as investment value for individuals. Some investors look at gold as an asset, while others use it as a tool to hedge against market volatility and inflation.
Gold is, therefore, a popular investment choice for many. However, if you think that buying jewelry offline is the only way to invest in gold, think again. The modern-day market offers you different gold-related investment avenues online.
How to invest in gold?
Digital gold
The new trend of investing in gold is digital gold. You can invest any amount and own a proportionate value of gold in virtual form. It is convenient to store or sell, and you can even exchange it for physical gold.
Gold mutual funds
Gold mutual funds are professionally managed schemes that invest in gold through gold exchange-traded funds. You can invest a lump sum amount or opt for SIPs to invest affordably in installments.
Sovereign Gold Bonds (SGBs)
Issued by the Reserve Bank of India (RBI), SGBs are backed by physical gold. You can invest in SGBs and hold a proportionate value of gold. The benefit of SGBs is that they offer guaranteed interest on your investment along with the chance of capital appreciation if gold prices increase by the time of maturity of the bonds.
Gold Saving Schemes
Have you ever heard of the offer wherein jewelers motivate you to pay fixed monthly installments and then buy gold at the end of the tenure? Most jewelers now offer the same service online as well. Many even offer to contribute one or two installments and allow you to accumulate a corpus to buy gold from them. This is how Gold Saving Schemes work.
Gold ETFs
Gold Exchange Traded Funds (ETFs) are instruments that pool investment from different investors and then invest the pooled corpus in physical gold. Moreover, they are listed on the stock exchanges allowing you to trade in them, which makes this an extremely liquid form of investing in gold.
Physical gold
Buying physical gold in the form of jewelry, gold coins, bars, ornaments, etc., is the traditional way of investing in gold. But there are online alternatives for this as well. Not only physical gold like jewelry can be bought online, but most banks and investment companies also provide services to convert your e-gold into physical if that is your choice.
So, let’s learn how to invest in gold online and have a gold-backed investment in your portfolio.
Invest in gold online
Buying gold online is a very simple and uncomplicated process, unlike what a lot of people think. There are numerous banks and service providers that offer gold investment options online. Most service providers will give you options for investments in the form of Sovereign Gold Bonds, gold ETFs, and gold mutual funds. You can choose one or more of these investment avenues based on your needs and risk profile.
Before you start buying gold online, it is very important to find the right financial expert to make sure you choose the option that is best for you. An investment expert could help you clear your doubts and will work with you to create an investment plan, be it investing in gold or exploring different avenues like mutual funds, stocks, etc.