Investing in gold has long been considered a reliable way to preserve and grow wealth. With advancements in technology, investing in gold has become more accessible than ever, allowing investors to buy, sell, and manage their gold investments online. This guide explores three different ways to invest in gold online: through digital gold platforms, gold exchange-traded funds (ETFs), and gold bonds (SGBs).
Each method offers unique advantages and caters to various investment strategies, ensuring there is an option suitable for every investor. Discover how you can conveniently and securely invest in gold online, diversifying your portfolio with this timeless asset.
Traditionally, people have always preferred buying gold jewellery over any other valuables. However, gold used in jewellery is never 100% pure and also involves making charges. It may not be profitable if you decide to sell your jewellery in an emergency.
Investing in gold coins and bars may not be a completely non-traditional way to buy gold as it is still physical gold. But it is definitely a better option as the purity levels are 99.5% or higher and these coins and bars come with a BIS hallmark.
Gold Exchange Traded Funds (ETFs) are open-ended mutual funds that depend on the changing prices of gold. Investing in them gives you dual benefits as you are not only investing in gold but also getting the flexibility of trading in stocks.
The investment is low-risk and ideal for those who would like to diversify their portfolio. You can purchase gold ETFs online as they are very flexible and you can enter and exit easily. The investment needed is also very low; you can start with as little as one gram of gold.
Gold bonds are a safer alternative to physical gold as they eliminate the cost and risk of storage. Issued on behalf of the government by the Reserve Bank of India (RBI), these are securities whose denomination is calculated on the basis of the weight of gold. The weight mentioned in the bond is akin to buying and owning that amount of gold, albeit in demat and paper form.
If you do not have funds at hand immediately but would still like to invest in gold, you can invest in Gold Futures. This allows you to buy a set quantity of gold at a price that’s already been determined on a fixed date. All you need to do is arrange a Futures contract through a broker by doing a cash deposit.
HDFC Bank offers you two ways to invest in gold this Dhanteras. The first is the Indian Gold Coin, which comes with a BIS hallmark and is a first-of-its-kind offering promoted by the government. The second option is the Mudra gold bar, which is specially imported from Switzerland.
Both come with Assay Certification, which is accepted globally as a standard for gold purity. They are available in select cities and come with a host of security features that leave no scope for tampering. HDFC Bank is one of the few banks to have approval from the RBI to import and sell gold to its customers in India.
HDFC Bank Sovereign Gold Bonds are another option; these offer an assured interest rate of 2.5% per annum. You can enjoy ease of investing via net banking and your HDFC Bank Demat Account. The bonds have a tenure of eight years, with an exit option starting from the fifth year. Issued by the government, they are tradeable on the stock exchange. TDS is not applicable on them and they can be used as collateral for loans.
HDFC Bank also deals in Gold ETFs.
So, go ahead and do something different this Dhanteras. But don’t forget to add the glamour and glitter of gold to your life!
Wondering what to do about your gold investments? Click here to read more about Gold Loans and how it can benefit you!
Looking to purchase in Gold? Log into your NetBanking > Click on Offers tab to get started! You can even visit your local HDFC Bank Branch.
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