Today 24 October is Pushya Nakshatra. This day is very special in terms of shopping and worship before Diwali. It is said that investing in gold on this day gives eternal benefits.
In such a situation, if you are thinking of investing in gold, this may be the right time. Today on the occasion of Pushya Nakshatra we are telling you about 4 ways to invest in gold…
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: Also earns a fixed interest of 2.50%
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 worth 1 gram of gold, the value of the bond will be the same as 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: Can buy and sell on stock 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 given 55% return in 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
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.
Image Credit: (Divya-Bhaskar): Images/graphics belong to (Divya-Bhaskar).
