Investment Tips: Smart Gold Investment: Ditch Jewelry, Invest Digitally This Diwali and Get Rich

Traditionally, investing in gold meant buying physical jewelry, coins, or bars. However, technology has completely transformed investment methods. Gold investment is no longer limited to its physical form; several new digital and market-based options have emerged. Today, individuals can invest millions without physically holding an ounce of gold, benefiting from price appreciation and the flexibility to sell their investment on the same or next business day. During festive seasons like Dhanteras and Diwali, most people prepare to buy gold. But if your interest lies solely in investment gains and not in crafting jewelry, you've multiple convenient digital avenues for gold investment.

Digital Gold

Digital gold is linked to actual gold, and its price fluctuates accordingly. It incurs no making charges or storage costs, while you can buy or sell it 24x7, and investments can start from as little as 1 rupee. Both lump sum and SIP investment methods are available, while according to Tanishq, when investors sell digital gold, the money is credited directly to their bank accounts. Also, digital gold can also be converted into physical gold if desired.

Gold ETFs

Gold Exchange Traded Funds (ETFs) invest in physical gold, but investors don't need to hold the metal themselves. They're traded like shares on the stock market, requiring a Demat account. These are low-expense and high-liquidity investments. According to Chirag Muni, Director at Anand Rathi Wealth Limited, Gold ETFs are the best option for those looking to invest in gold as they eliminate costs like storage, insurance, or making charges. He stated that Gold ETFs offer more flexibility and lower. Costs than digital gold, making them more beneficial for long-term investments. For instance, Nippon India ETF Gold BeES, India's oldest Gold ETF, has delivered approximately 950% returns since 2007, turning a 10 lakh rupee investment into over 1 crore rupees in 18 years.

Gold Mutual Funds

Gold Mutual Funds primarily invest in Gold ETFs. You can invest in them via lump sum or SIP, while they're an excellent option for new investors who prefer not to buy gold directly. However, their expense ratio is slightly higher than Gold ETFs, which might marginally reduce returns. For example, over the last 10 years, ABSL Gold Direct Plan has provided an average annual return of 15. 86%, meaning a 10 lakh rupee investment grew to over 44 lakh rupees in 10 years.

Sovereign Gold Bonds (SGBs)

Sovereign Gold Bonds are issued by the Reserve Bank of India (RBI) on behalf of the central government. These bonds are based on 999 purity gold. They've an 8-year maturity period but can be redeemed after 5 years. While new schemes might not always be open, they can be purchased from the secondary market. Besides benefiting from gold price appreciation, investors also receive a fixed annual interest of 2, while 5%.