With gold prices soaring in recent months, investors are increasingly turning to the yellow metal as a safe and lucrative option. However, with multiple ways to invest, from physical gold to digital and sovereign
gold bonds, choosing the right avenue has become a key question for many.
Traditional options include gold jewellery, gold bars, and coins, while modern alternatives like digital gold and gold ETFs are gaining popularity. Each method carries its own set of advantages and disadvantages.
Different Ways To Invest In Gold
Siddharth Maurya, founder and managing director of Vibhavangal Anukulkar Private Limited, emphasises the importance of making informed decisions rather than being driven by emotions when investing in gold. Understanding ones investment needs is crucial. While gold jewellery is a popular choice due to its dual purpose as adornment and investment, it is not the best option. The additional costs such as making charges, impurity issues, and deductions upon resale can lead to losses.
Gold ETFs and gold bars, on the other hand, offer a more practical investment avenue. Gold ETFs provide pure gold, can be easily traded, and come with transparent pricing. Digital platforms have made purchasing gold more convenient than ever. According to Maurya, gold should be seen not merely as a commodity but as a strategic investment. He emphasised that when selecting a gold investment method, financial goals should take priority over emotions.
Gold ETFs offer a convenient digital way to invest in gold from home, eliminating concerns about physical storage or security. The investment process is fully transparent, with no hidden charges or GST, and provides high liquidity, allowing investors to sell easily whenever needed.
On the other hand, for those preferring physical gold, bars or coins are the better choice, as they are pure and tend to maintain stable prices over time.
Least Recommended Way To Invest In Gold
Investing in gold jewelry is widely regarded as the least effective option. While jewelry has the dual appeal of being wearable and an investment, it comes with significant drawbacks. Most jewelry is not pure gold but contains alloys, and additional costs like making charges, wastage fees, and design premiums further reduce its value.
When selling, these extra costs are deducted, often resulting in a loss. For serious investment purposes, gold ETFs and gold bars are far better choices. Selecting the right gold investment, based on one’s goals and budget, can help protect one’s money while delivering better returns.
(Disclaimer: This news is published for informational purposes only. If you wish to invest in these options, consult a certified investment advisor first. News18 will not be responsible for any profit or loss.)
