Investing in gold has been popular in India for a long time. People buy gold to save for the future, as it’s valuable.
Even though there are new ways to invest now, gold is still a good option. Lately, gold prices have been going up every day, reaching Rs 70,599 per 10 grams.
This might go up more in the future, so investing in gold could be a good idea. If you’re thinking about it, you can consider gold ETF instead of physical gold. But what exactly is gold ETF, and why is it a good choice?
Gold ETF, or Exchange Traded Fund, is like a mutual fund based on the price of gold. You can buy and sell it on stock exchanges like shares.
But unlike physical gold, you don’t get actual gold. Instead, you get money equal to the gold’s price when you sell.
Here are some benefits of gold ETF
Easy shopping: Buying gold ETF is easier than physical gold because you buy it in units. One unit means one gram of gold. So, even if you don’t have much money, you can buy a small amount of gold.
No worries about security: With gold ETF, you don’t need to worry about keeping gold safe. It’s electronic and stored in a demat account, like shares.
Save on making costs: When you buy jewelry, you pay for making charges, making gold more expensive. But with gold ETF, you don’t pay any making charges.
Guaranteed purity: Gold ETFs guarantee 99.5% purity, which is very high. It’s also less risky than investing directly in the stock market.
Can be used as security: You can use gold ETF as security for loans in the future. Plus, you can buy and sell it easily without any hassle.
To invest in gold ETF, you need to open a demat account first. Then, you can buy units of gold ETF from the stock exchange, and the money will be deducted from your linked bank account.
After a day or two, the gold ETFs will be in your account. And remember, you can only sell them through a trading account.
