Today 29th October is Dhanteras. It is considered auspicious to invest in gold on this day. Currently, gold is at 78 thousand rupees per 10 grams. According to Anuj Gupta, Head of Commodities and Currencies, HDFC Securities, gold may touch Rs 87,000 per 10 grams by the next quarter of a year.
In such a situation, if you are thinking of investing in gold, this may 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 from 1 rupee.
1. Physical Gold: Can buy gold biscuit-coins Investing in physical gold means buying jewelery or gold biscuit-coins. Experts do not consider buying jewelery to be a good way to invest in gold, as it incurs GST and making charges. That's why you have to pay more in advance. While making jewellery, you should not invest in 24 carat gold, as 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 Bonds are government bonds, which are issued by the government from time to time. Its value is not in rupees or dollars, but in gold weight. If the bond is of 1 gram of gold, the value of the bond will be equal to the price of 1 gram of gold. Sovereign Gold Bonds earn a fixed interest of 2.50% per annum on the issue price.
Buying it is easy: 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 also be done offline.
3. Gold ETF: Stocks can be bought and sold on exchanges
A facility to buy gold like a stock is called a gold ETF. These are exchange-traded funds, which can be bought and sold on the stock exchange. Gold ETF's benchmark is the spot gold price, so you can buy it close to the actual price of gold.
Demat account required for investment: To buy gold ETF you need to open a demat account. In this, you can buy units of gold ETFs 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 1 rupee gold
Now you can invest in digital gold right from your smartphone. No need to spend much money for this. You can buy gold at any price as per your convenience. Even Rs 1. This facility is available on platforms like Amazon Pay, Google Pay, Paytm, PhonePe and MobiKwik.
Gold has returned 55% in the last 5 years
Investment in gold is beneficial for long term. If we talk about the last 5 years, gold has given 55% annual return ie 11%. In October 2020, gold was Rs 50,605 per 10 grams, which has now reached Rs 78,446.
Keep these 4 things in mind while buying gold
Keep these 4 things in mind while buying gold
1. Buy only certified gold: Always buy certified gold with Bureau of Indian Standards (BIS) hallmark. Gold has a 6 digit hallmark code. It is called Hallmark Unique Identification Number or HUID. This number is alphanumeric ie something like – AZ4524. How many karats the gold is can be known by hallmarking.
2. Check Price: Cross-check the exact weight of the gold and its price on the day of purchase from multiple sources (such as the India Bullion and Jewelers Association website). The price of gold varies according to 24 carat, 22 carat and 18 carat.
24 karat gold is considered to be the purest gold, but it is not used in jewelry because it is too soft. Usually 22 karat or less karat gold is used for jewelry.
Suppose the price of 24 carat gold is 78 thousand rupees per 10 grams. That is, the price of one gram of gold was 7,800 rupees. In such a situation, the price of 1 gram of gold of 1 carat purity was 7,800/24 rupees i.e. 325 rupees.
Now suppose your jewelery is made of 18 carat pure gold, then its cost is 18×325 i.e. Rs 5,850 per gram. Now the number of grams of your jewelery is Rs. The exact price of gold can be calculated by multiplying by 5,850.
3. Don't pay in cash, take a bill: While buying gold, it is better to pay through UPI and digital banking instead of cash payment. You can also pay by debit or credit card if you wish. Don't forget to take the bill after this. Be sure to check the packaging if you ordered online.
4. Know Reselling Policy: Many people look at gold as an investment. In such a situation, you need to have complete information about the resale value of gold. Also, discuss the buyback policy of the jeweler concerned with the store personnel.
A limited investment in gold is beneficial
Anuj Gupta, Head of Commodities and Currencies at HDFC Securities, says limited investment in gold should be done. Only 10 to 15% of the total portfolio should be invested in gold. Investing in gold can provide stability to your portfolio during crises, but in the long run it can reduce your portfolio's returns.
India consumes 800 tonnes of gold every year
- India consumes 800 tonnes of gold per year India consumes 700-800 tonnes of gold per year, 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, the US Treasury holds 8,000 tons of gold.
- Gold is a 'Nobel' metal, meaning it does not corrode or lose its luster. Other 'nobel' metals include ruthenium, rhodium, palladium, silver, copper, platinum.
- Gold is the 58th rarest element on earth. The earliest gold coins were minted in Lydia, 700-650 BC. They were made of electrum, a natural alloy of gold.
Also Read This Investment Related News…
Get into the habit of investing this Diwali: Small savings can turn big, here's how to start investing.
The 5-day festival of lights begins on Dhanteras. It is the biggest festival of prosperity and prosperity in our culture. Since ancient times, people have been buying gold, silver, utensils, houses, etc. on this occasion. The learning from an investment perspective is that we should invest a small portion of income.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
