Gold vs. ETF vs. Gold Bonds: Gold prices have seen a decline after the budget. Gold is a very good option for investment but the question arises as to which form of gold should we invest in. Where will we get more benefit. In this article we will tell you which option will be best for you between Gold ETF and Gold Bond.
Gold vs. ETF vs. Gold Bonds: Buying gold is considered auspicious in India . Apart from this, it is also people’s first choice for investment. Actually, it is believed that gold gives higher returns than other investment options because it gives positive returns with strength in any time of recession or inflation.
In June, there was a tremendous rise in the price of gold. At the same time, after the Union Budget (Union Budget 2024-25), the price of gold softened. In the general budget presented on July 23, Finance Minister Nirmala Sitharaman said that the government has reduced the tax on gold imports from 15 percent to 6 percent. Gold prices softened due to the reduction in import duty. Gold is not produced in India and it is also the largest gold consumer country in the world, so due to the reduction in duty tax, the prices fell.
After the fall in gold prices, people are confused as to which form of gold they should invest in to get maximum benefit? This means whether they should invest in Physical Gold, Gold ETF or Sovereign Gold Bond (SGB)?
You can invest in ETF
Gold ETF is a very good option in terms of short term profit. In this, the investor can withdraw money as per his wish at any time. That is, investors can buy or sell it as per their wish. Gold ETF has less purchasing charge than physical gold and it guarantees 100 percent purity.
You can invest in Gold ETF through SIP. The special thing about Gold ETF is that it can be used as security while taking a loan.
Physical gold is a good option
The price of physical gold and digital gold is the same. However, there is a risk of theft or loss in physical gold. However, this risk does not exist in digital gold. Apart from this, there is also a risk of cheating in carat or fake gold while buying physical gold. If you are fond of wearing gold jewellery, then you can select the option of physical gold.
If you want a safe and long-term investment, then *Sovereign Gold Bond* can be a good option. On the other hand, if you want liquidity i.e. the facility to withdraw money easily, then *Gold ETF* will be right. *Gold jewellery* is suitable for those who want to buy gold for investment as well as personal use.
Siddharth Maurya, Founder and Managing Director, Vibhavangal Anukulkara Pvt Ltd
Sovereign Gold Bond is also the best option
Sovereign Gold Bond is a very good option for long term tenure. Let us tell you that it has a lock-in period of 8 years. That is, you cannot withdraw for 8 years after investing. However, it provides income tax benefit after maturity and a guaranteed return of 2.5 percent.
If you want to invest in gold but do not want to invest a large amount, you can still choose SGB. Let us tell you that the SGB scheme has been started by the Government of India. In this, you are allowed to invest a minimum of 1 gram and a maximum of 4 kg.
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