How Can I Invest In Gold?

Since historic ages, gold has been a precious and valuable asset to deal and negotiate major financial matters. The metal not only has its own economic value but in India, gold is far beyond its price. The value it offers to your sentiments along with your fiscal requirements is something which makes this metal even more precious and valuable. When it comes to online gold trading, you have to be little proactive with some key factors which drive the value, demand and supply of gold across the world. Gold investment can be done in many forms like buying jewelry, coins, bars, gold exchange-traded funds, Gold funds, sovereign gold bond scheme, etc. This post will give you enough insight to make the best investment in gold trading online.

1. Physical Gold

For Indians, possessing gold is a matter of pride and an indicator of their economic status. This is the most orthodox gold investment plans which almost every Indian would make at their own level. But buying jewelries for investment purpose will not prove to be a smart option as the making charges and outdated designs may be a deciding factor in getting returns on it.

2. Buying Gold Bullions

For trading gold, a gold bullion is the safest option. It is a yellow metal in form of a coin or bar. Generally ranging in different weights from quarter ounce to 400 ounce bricks which you can easily get from any precious metal dealer, in some cases, banks and from brokers. Just make sure that you buy it from a reputed gold trade dealer. You also need to be careful regarding its storage, however, most of the people play it safe by keeping them in bank lockers. As compared to jewelries, keeping gold bullions will pay you much better returns when the prices are high.

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3. Sovereign Gold Bonds

For gold trading in India, this is the safest way to buy digital gold which is issued by the Reserve Bank of India on behalf of Indian government with an assured interest of 2.50 % per annum.  Th and bonds are denominated in units of grams of gold with a basic unit of 1 gram. The maximum investment one can make is of 4 kg. These bonds have a tenor of eight years with an exit option from the fifth year onwards. This makes you the owner of gold without actually owning it.

4. Gold ETFs

Gold Exchange Traded Funds (ETFs) is another method to own paper gold in a cost effective manner. The trading is done on NSE or BSE with gold as underlying asset. To start with online gold trading in India, all you need to do is to create a trading account with a stock broker with a Demat account. Focusing on expense ratio, gold investing price, broker cost and tracking errors will give you an extra edge while getting returns on such investments.

5. Gold Futures Options

This scheme is for those who have some basic understanding in gold trading or are already experienced gold traders. It works on your guess and assumptions about the rise and fall in gold prices. You can buy and sell gold at a specific price for a certain time period. However, if your guess goes wrong in anyway, the maximum risk associated with buying options will be the premium which you paid at the time you entered the contract.