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How to Invest in Gold Online?

How to invest in gold Online
Isn’t it difficult to find a person in India who haven’t bought gold in his/her lifetime? Yes, it is. Indians are gold lovers. They treat gold not only as jewelry but also as a form of Investment. Usually many buy gold offline i.e., by going to shops. In this article let us learn how to invest in gold online.
First, let us see the advantages and disadvantages of buying gold offline and then we will forward to our main topic.

Advantages of buying gold offline

Disadvantages of buying gold offline

Let us get into our Topic
These are two ways by which you can buy gold online

  1. Sovereign Gold Bonds.
  2. Gold ETF (Exchange Traded Fund)

Sovereign Gold Bond Scheme

In India, Sovereign bonds are issued by Reserve Bank of India on the behalf of Government of India. You can buy these bonds through a registered broker ex-ICICI Direct, Zerodha, etc., After that, you get your gold in dematerialized or paper form.

So how this works
By this scheme, you can buy gold as low as 1 gm and maximum up to 4 kgs. Gold will be stored in demat form. Whenever you sell those bonds you will get money based on that current day gold price. The money will be directly deposited into your bank account which is linked to the demat account.

Key Feature

Advantages of SGB

Disadvantages of SGB

Gold ETF (Exchange Traded Fund)

Now let us know how to invest through Gold ETF. Gold Exchange traded fund is similar to mutual funds. This is an open-ended mutual fund scheme.
Let me take this opportunity to explain what is Open-ended Mutual Fund scheme. This is a scheme through which don’t have any maturity period that means you can buy and sell whenever you want.
So you can buy and sell gold funds whenever you want. To buy you need to have a demat account and trading account. Just place the order in your trading account and then the ETF will be stored in your account in demat form.
Expense ratio will be charged for maintenance of the fund. You also charged by the broker every time you buy or sell funds but these charges are far less when compared to expenses involved with physical gold.

Advantages of Gold ETF

Disadvantages of Gold ETF

Advice – If you are buying gold as investment purpose then do it online because this mode of investment has more advantages when compared to offline mode.

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