As you guys know, I have been keeping a close eye on the Gold for like 2-3 weeks and my close friend is also aware of it. I thought why not, write on the best way to buy gold in India.
I decided to write this article in an utmost hurry since once the Gold Prices keep rallying, we will lose out on the big opportunity.
Gold is a big deal in India, and it will definitely be getting value on the coming festivals and the price fluctuates well enough.
What Are The Best Ways To Buy Gold In India?
My personal view is to never buy the gold physically or even digitally. It doesn’t make any sense and the prices you get are never on point.
There are many digital places where gold is being sold and bought as well. For example, we have PayTM which offers Gold, and we also have Google Pay which offers gold services.
They both have different prices when compared to the actual price of Gold. When you’re buying from them, the buy price is insanely higher than their sell price. This is why I don’t actually recommend them.
I usually buy Gold ETF to to trade or invest in gold for either long or short term.
What Is ETF?
ETF is short form of Electronic Traded Funds. Basically they are just like stocks and their movement in price is directly proportional to the underlying assets.
Therefore in case of GOLD ETF, the underlying asset is GOLD. When the price of Gold increases or decreases, the GOLD ETF prices as well fluctuates.
What Are Best GOLD ETF?
Basically, Gold ETF is good when you’ve a good short term or long term view for the gold. The best GOLD ETF are listed below
- Nippon India Gold Bees ETF - ₹40.45 (as of 10/4/21)
- IDBI Gold ETF - ₹4,243.50 (as of 10/4/2021)
- UTI Gold ETF - ₹41.30 (as of 10/4/2021)
- Quantum Gold ETF - ₹2,009.95 (as of 10/4/2021)
You can search them like any normal stock and buy them as per your capital. If in case, you still don’t have a DEMAT account, then open read this guide on which broker to choose.
What Are Downsides of Investing In Gold?
Many investors believe that investing in Gold is a very volatile game. I do agree, that the prices of Gold are volatile but in the past, Gold definitely always beat the inflation game.
However, long term aside, if you just need to take benefits of the short term price increase in the gold, you can easily enter just like buying and selling shares.
However, smaller priced ETF are lot less volatile and you will need to enter with good amount of quantity to make good profits.
Apart from this, there is no other downside to look for investing in Gold.
The Well-Known Investor, Warren Buffet once said, Diversification may preserve wealth but concentration creates wealth.
Sometimes, Investor to reduce their risk tends to diversify which I don’t believe would do some good but if they know what they are doing, there is no need to diversication.
Hope you’re now aware one new thing in your brain. ETF are same as stocks hence it is much good for beginners to stay within this boundary for now. The other good way to buy gold is to directly invest in Gold Futures trading on MCX (Commodities) market.
Well, we need a commondoties trading account and much more. As we move along, we will learn more. This is now for today, see you in the next post soon.