Gold is one of the most popular investments in India and Akshaya Tritiya is considered an auspicious day to buy gold. Many citizens still stick to the traditional method of buying gold, that is owning physical gold. In this blog, we will discuss various other options available to buy and hold gold where the value is just the same as physical gold.
Sovereign gold bonds are backed by the Government of India and aim to reduce the physical ownership of gold. Advantages of investing in sovereign gold bonds are, it gives you capital gains through the appreciation of gold and you can also earn an interest on your investment. It is issued by the RBI on behalf of the Government of India. You can buy sovereign gold bonds through trading accounts, banks, post offices, NBFCs, and stock exchanges. You have to pay the issue price in cash and bonds will be redeemed in cash on maturity.
Gold exchange traded funds are bought and sold on stock exchanges (NSE and BSE) as they are listed and managed by an asset management company. You must have a trading account to buy gold ETFs and the procedure is just the same as buying shares online. Returns on gold ETFs are linked to gold prices. You can start investing in gold ETFs with just one gram. As gold ETFs are in digital form, there is no risk of theft and high costs through making charges.
Now, you can buy gold digitally through e-wallet companies. You can also get gold delivered at your doorstep in the form of coins. Gold through e-wallets can be purchased with even Rs 1 and it would be 24K 999.9 in terms of purity.
Ashoka Chakra Gold Coin
If you still want to buy physical gold, you can buy Ashoka Chakra Gold Coins. It is launched by the government of India and it has Ashoka Chakra on one side and Mahatma Gandhi on the other. This gold coin is of 24 karat purity and 999 fineness and will be hallmarked as per the BIS standards. You can purchase these coins at banks and the MMTC.