WHY INVEST IN GOLD
We love gold, almost every Indian home has a little of it. For centuries, gold has
remained an auspicious gift, whether it's for a new born baby or for a newly married
couple.
We all know how gold gets passed down generations and has proved to be a good investment
over decades. No wonder, India is world's largest consumer of gold. Gold's most
enduring benefit is its ability to stabilize a portfolio and protect it against
market fluctuations.
Historically, gold prices have shown better stability even during periods of crisis,
as compared to other investment types. Most experts advise investing in gold as
a "must", since gold creates a robust portfolio that withstands market fluctuations.
Gold has reflected providing stable returns in the long run.
ABOUT GOLD ETF
Buying Gold ETF is purchasing gold in electronic form. You buy them just
like you buy stock of any company from your broker. Gold ETF makes it easier for
you to invest in gold. The investment objective of Gold ETFs is to provide you with
returns that closely correspond with the domestic price of real gold. Each
Gold ETF unit that you buy is roughly equal to the price of 1 gm of gold.
They are easy to buy since you can even buy just one gram at a time. Over
time, you can build up your gold portfolio to the level you want, just as you would
with your bank or jeweler, only this is easier.
GOLD ETF BENEFITS
- No premiums or making charge: You end up paying a premium for gold coins & bars
purchased from banks and jewelers charge extra as making charges. With GOLD ETF,
you don't have to pay any premium, making or delivery charges. Yet whenever needed
you can also exchange them in multiples of 1kg units for 0.995 purity
- No worries of theft: You always worry about the safety of your gold and also end
up paying for bank lockers. Buying Gold ETF is purchasing gold in electronic form.
You buy them just like you buy stock of any company from your broker. With Gold
ETF, since your gold is now in demat form there are no worries of theft and you
also save on locker charges.
- Easy to sell: Unlike gold coins and bars, which the banks don't buy back and most
jewelers only offer to exchange but not buy back. Gold ETFs can be sold anytime
through your broker at transparent prices available for view at NSE's website. And
unlike other forms of gold, you get the same price for your Gold ETF across India.
On Gold ETF, you pay no sales tax, securities transaction tax, VAT or wealth tax
