Five best ways to invest in Gold

Last Updated: Tuesday, October 9, 2012 - 11:45

Ajeet Kumar/Reema Sharma

New Delhi: Gold has always proved that it is the safest bet whether the economy is in reeling under recession or suffering the brunt of inflation.

As far as investment prospects in India is concerned, Gold has given far more returns as compared to other investment options.

In India, investment in Gold in India has become all the more important because the yellow metal has given better returns in the country as compared to international market because of the weakening of rupee.

At the current price of around Rs 32,000 per 10 grams in the bullion market, the demand for the precious yellow metal remains upbeat.

Most analysts opine that Gold’s bull-run is yet to be over and that it will continue to give better returns in the near term. By the end of this year Gold might test Rs 35,000 per 10 grams.

Here are a five best ways to invest in Gold

Buying physical gold: You can buy Jewellery from shops which sell hallmarked ornaments, Gold coins or Gold bars. Coins can be brought either from Jewellers or from banks.

Gold ETF: ETFs have come to be a very good way of investment for those who don’t want to keep physical Gold for safety concerns. All you need to have is a Deemat account. Many Gold ETFs are available in the maket where you can buy paper Gold. It is the easiest and hassle-free method to maintain Gold

Trading through commodity exchange: You can buy Gold through Gold futures from MCX, NCDEX, ICEX. Here too you will have to open a Deemat account. By paying a minimum brokerage fee, you can trade in Gold futures.

Buying through e-Gold : e-Gold is also an electronic form of holding Gold. It is slightly different from buying ETFs. Here you are directly the owner of the Gold while in ETFs the holding company is the owner of the Gold. The process is more or less similar to buying ETFs.

Equity based Gold funds : You can invest in mutual fund schemes which has its exposure in companies engaged in Gold mining, processing, extraction and marketing. All you need to have is a Deemat account.

First Published: Saturday, September 29, 2012 - 14:35
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