With recent gold price surges, many investors are now considering their investment options. In India, 24K gold at 10g costs ₹86,793, and 22K gold is priced at ₹79,573. Despite a slight dip last week, prices for February have risen by 2.2%. Digital investment forms like Gold ETFs are gaining popularity over physical gold purchases in unpredictable markets.
Sridaran Sundaram, an SEBI-registered investment advisor and founder of Wealth Ladder Direct, prefers digital gold investments to physical ones. He believes that investing digitally enhances returns by cutting costs linked to physical gold, like making and storage expenses. According to Sundaram, maximizing gold investment is achieved solely through digital investing.
A Gold ETF is a fund that allows investors to trade gold on a stock exchange, with its value tied to the price of gold. These ETFs offer advantages such as easy tradability on stock markets, enabling investors to maximize gains by conveniently buying or selling them when desired.
Gold ETFs remove the need for physical gold storage costs as profits can go directly to your bank account from your linked demat account, saving on bank locker fees of ₹5,000-7,000 annually. Buying digital gold like an ETF removes the typical 15-20% making costs associated with gold jewelry.
Gold ETFs offer accessibility by enabling investment in small denominations. For example, with one gram of physical gold around ₹8,600, digital gold via an ETF can be purchased in denominations as low as ₹500-1,000. Tracking gold prices is simple with ETFs, enhancing transparency and facilitating easy monitoring of investment performance.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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