Akshaya Tritiya 2023: 4 different ways to buy digital gold The following four unique strategies will be helpful to you in the future
With Akshaya Tritiya around the corner, many Indians believe that buying gold on this auspicious day will bring them luck and prosperity. Traditional gold investors should note that there are different types of gold which can be bought apart from physical gold. Unfortunately, the gold used in jewellery is never 100 percent pure and is thus subject to charges.Nowadays, there are many options for purchasing gold, especially if you are considering it as an investment. Here are four unconventional methods that will be advantageous for you in the future:
Digital Gold
In India, MMTC-PAMP, Augmont, and SafeGold all offer digital gold. Also, you can purchase it from websites like mobile e-wallets, brokerage companies, and financial institutions. The return on this investment is determined by the market price of physical gold, and digital gold is 100% pure, stored safely, and fully insured.
Invest in 24K, 999.9 purity gold to protect against volatile markets.
Due to MMTC-free PAMP's 5-year storage of your gold, you can avoid paying storage fees that you would have to pay to banks. Monitor gold prices in real-time to make sure you buy at the proper time.
Also read: How to buy gold online? Here are three ways
Gold ETFs
Mutual funds that track the domestic price of physical gold are known as gold ETFs. Your investment is used by the fund management business to purchase gold bullion. Investing in gold ETFs is secure and subject to strict regulation because they are listed and traded on stock markets. One unit of the gold ETF, which equals the cost of one gramme of actual gold, is the required minimum investment. Gold ETFs have great liquidity and are simple to trade on the stock market as they are listed.
Gold Mutual Fund
Gold ETFs serve as an intermediary for Gold Mutual Funds, which do not invest directly in physical gold. The price of gold immediately affects the value of the underlying asset because it is kept in the form of physical gold. This operates exactly like every other mutual fund.
Sovereign Gold Bonds
Sovereign Gold Bonds (SGB) avoid the expense and risk of storage, making them a safer alternative to actual gold. These securities, which have a denomination determined by the weight of gold, are ones that the Reserve Bank of India (RBI) issued on behalf of the government. SGB offer an assured interest rate of 2.5% per annum.
The bonds have an eight-year term, with an exit option available after the fifth year. They can be used as loan collateral and TDS is not applicable to them.
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This story originally appeared on: India Times - Author:Faqs of Insurances
