Investment in Gold: If you consider gold better from investment point of view and want to invest money in it, then which option is better, Gold or Sovereign Gold Bonds? Know about it from Anil Singhvi-
Gold Vs Sovereign Gold Bonds: Gold is a traditional way of investment. People have been investing in gold for years and this trend continues even today. However, with time the methods of investing in gold have also changed. If we look at it from investment point of view, now there are many ways in which investment can be made, not just physical gold, but also digital gold, sovereign gold bonds etc.
But Gen Z who were born between 1997 to 2012, who have recently started earning or are going to start earning soon, if they want to invest money in gold for investment then Physical Gold or Sovereign Gold Bonds are for them. Which of the two options is better for them? Managing Editor of Zee Business, Anil Singhvi told about this in Zee Business’ special program ‘Financial Planning of Gen Z’. Let us tell you what Anil Singhvi said-
Where does Gold or Sovereign Gold Bonds give better returns?
Anil Singhvi says that if you are one of those investors who do not want to take any kind of risk in terms of investment, then you can invest in FD, PF and gold etc. Although the returns of FD and PF do not beat inflation, but gold comes in the ‘medium risk medium return’ category. In the long term, it gives returns equal to inflation.
If you want to beat inflation then instead of gold, choose Sovereign Gold Bond which is issued by the Government of India. Its advantage is that as the value of gold increases, the value of this bond will also increase. Apart from this, the government also gives you interest at the rate of 2.5 percent. In this way, you get double benefit in gold bonds, the price of gold also increases and you also get interest of 2.5 percent per annum.
Where can you buy gold bonds
– Can buy online and offline from banks
– You can also buy it from the post office.
– Can be purchased through stock holding corporation.
– There is an option to buy from BSE and NSE platforms also.
How much gold can I buy
Any person can invest at least 1 gram and maximum 4 kg of gold in a financial year through SGB. The tenure of Gold Bond is 8 years from the date of issue of the bond. However, pre-mature redemption can be done after 5 years. You can sell Sovereign Gold Bond in banks, Stock Holding Corporation of India Limited (SHCIL), post offices and stock exchanges i.e. BSE and NSE.
