Today, 29th October is Dhanteras. Investing in gold is considered auspicious on this day. Currently gold is at Rs 78 thousand per 10 grams. According to Anuj Gupta, Commodity and Currency Head, HDFC Securities, gold can go up to Rs 87 thousand per 10 grams by the next quarter of a year.
In such a situation, if you are planning to invest in gold then this could be the right time. Today, on the occasion of Dhanteras, we are telling you about 4 ways to invest in gold. The special thing is that you can start investing even with Rs 1.
1. Physical Gold: Can buy gold biscuits-coins Investing in physical gold means buying jewelery or gold biscuits-coins. Experts do not consider buying jewelery as the right way to invest in gold, because GST and making charges have to be paid on it. That is why you have to pay more money upfront. While making jewellery, you do not invest in 24 carat gold, because gold jewelery is not made of 24 carat purity. However, you can invest in gold biscuits or coins.
2. Gold Bond: Fixed interest of 2.50% is also available. Sovereign Gold Bond is a government bond, which is issued by the government from time to time. Its value is not in rupees or dollars, but in weight of gold. If the bond is of 1 gram of gold, the price of the bond will be the same as the price of 1 gram of gold. Sovereign Gold Bond offers a fixed interest of 2.50% every year on the issue price.
It's easy to buy: To buy gold bonds, you have to open a demat account through a broker. In this, you can buy units of gold bonds available on NSE and the equivalent amount will be deducted from the bank account linked to your demat account. Investing can be done offline also.
3. Gold ETF: Stocks Can buy and sell on exchanges The facility of buying gold like shares is called Gold ETF. These are exchange-traded funds, which can be bought and sold on stock exchanges. Since the benchmark of a gold ETF is spot gold prices, you can buy it close to the actual price of gold.
Demat account required for investment: To buy gold ETF you have to open a demat account. In this, you can buy units of Gold ETF available on NSE or BSE and the equivalent amount will be deducted from the bank account linked to your demat account.
4. Payment App: You can also buy gold worth Rs 1 Now you can invest in digital gold right from your smartphone. There is no need to spend too much money for this. You can buy gold at any price as per your convenience. Even of Re 1. This facility is available on platforms like Amazon Pay, Google Pay, Paytm, PhonePe and MobiKwik.
Gold gave 55% return in last 5 years Investing in gold is beneficial for the long term. If we talk about the last 5 years, gold has given a return of 55%. That means 11% annually. In October 2020, gold was at Rs 50,605 per 10 grams, which has now reached Rs 78,177. Apart from this, according to experts, due to the ongoing geopolitical tension in the world, the rise in gold price will continue and it can go up to Rs 1 lakh by the next Dhanteras.
Keep these 4 things in mind while buying gold
1. Buy only certified gold: Always buy certified gold bearing the hallmark of Bureau of Indian Standards (BIS). There is a 6 digit hallmark code on gold. This is called Hallmark Unique Identification Number i.e. HUID. This number is alphanumeric i.e. something like this – AZ4524. Through hallmarking it is possible to find out how many carats of gold is.
2. Cross Check Price: Cross-check the correct weight of gold and its price on the day of purchase from multiple sources (such as the website of India Bullion and Jewelers Association). The price of gold varies according to 24 carat, 22 carat and 18 carat.
24 carat gold is considered to be the purest gold, but jewelery is not made from it because it is very soft. Generally 22 carat or less gold is used for jewellery.
Suppose the price of 24 carat gold is Rs 78 thousand per 10 grams. That means the price of one gram of gold was Rs 7,800. In such a situation, the price of 1 gram gold of 1 carat purity was Rs 7,800/24 i.e. Rs 325.
Now suppose your jewelery is made of 18 carat pure gold, then its price is 18×325 i.e. Rs 5,850 per gram. Now the exact price of gold can be calculated by multiplying the number of grams of your jewelery by Rs 5,850.
3. Do not pay cash, take bill: While buying gold, it is better to make payment through UPI and digital banking instead of cash payment. If you want, you can also make payment through debit or credit card. After this don't forget to take the bill. If you have ordered online then definitely check the packaging.
4. Know the reselling policy: Many people see gold as an investment. In such a situation, it is important that you have complete information about the resale value of gold. Also, discuss with the store employees about the buyback policy of the concerned jeweler.
Limited investment in gold is beneficial
Anuj Gupta, Commodity and Currency Head, HDFC Securities, says that limited investment should be made in gold. Only 10 to 15% of the total portfolio should be invested in gold. Investing in gold can provide stability to your portfolio during a crisis, but in the long run it can reduce your portfolio returns.
India consumes 800 tonnes of gold every year
- India consumes 800 tonnes of gold every year. India consumes 700-800 tonnes of gold every year, out of which 1 tonne is produced in India and the rest is imported.
- According to the World Gold Council, Indian households owned more than 25,000 tonnes of gold in 2019. According to 2021 data from the Department of Treasury, 8,000 tons of gold in the US treasury.
- Gold is the 58th rarest element on Earth. The earliest gold coins were minted in Lydia between 700–650 BC. They were made of electrum, which is a natural alloy of gold.
Graphics Source: VaskarAssets
