Top 7 Different Ways to Invest in Gold

1. Gold Commodity

Just like trading in shares of a company which involves an exchange, you can trade in Gold in the form of Gold futures contract which is equivalent to trading in physical Gold since the buying and selling takes place in the market and no physical delivery of the commodity is given. You can trade in Gold through the help of a commodities demat account. A good investment advisor can guide you with Gold trading strategies based on research.

2. Gold ETFs

Gold ETFs are exchange specific derivative instruments in which the underlying assets are the exchange rates of Gold and the cost of one Gold ETF reflects the price of Gold on the multi commodity exchange. Just like shares, Gold ETFs are stored in demat accounts, therefore, all the risks related to theft and burglary are eliminated. Any change in the price of Gold has its effect on the ETF. It is best suited for investors who have time and basic skills required for trading. It incurs asset management and brokerage fee too.

3. Gold Mutual Funds

Gold funds on the other hand involves investment in bullion, Gold mining and other related companies. They also include Silver, Platinum and other precious metals in the basket. A mutual fund manager usually manages the Gold fund on behalf of an asset management company. These funds don’t require a demat account and are not directly affected by any fluctuation in the price of Gold. There are various SIP options available if you plan to invest in Gold funds. There is very nominal fee required to manage the Gold funds. They are best suited for investors who expect high return by taking calculated risks.

4. Gold Jewellery

Indians cherish possessing gold jewellery. Though owning Gold jewellery comes with its own set of risks related to theft, burglary, outdated designs etc. but still it is one of the most opted methods of investment in gold. Investment in Gold Jewellery is the most preferred way of investing in Gold, especially in India and the riskiest one too.

5. Gold Savings Scheme

Gold savings scheme usually allows you to deposit a certain amount of money every month for a fixed tenure as per your wish. AT the end of the term, you can buy gold equivalent to the value of your deposit plus a bonus amount which is usually the interest on the deposits. This type of schemes are usually available across jewellers. A user deposits a fixed amount of sum towards the scheme every month and gets an additional amount which is usually equivalent to the amount payable every month

6. Sovereign Gold Bonds

Sovereign Gold Bonds or SGBs are a way of owning paper gold. These bonds are issued by the government. The government usually opens a window for the fresh sale of SGBs intermittently for the investors. This usually happens every 2-3 months and remains opened for about a week.

7. Digital Gold

Digital Gold is the latest form of Gold which is trending these days due to ease of owning it. An investor can now buy gold coins and bars online digitally. There are various online platforms which are offering digital gold. The user can buy and sell gold without owning or keeping it physically In case, if someone wants his gold in physical form, he can get it after paying certain amount which are usually towards the making charges.

Like all other investments, investing in Gold also comes with its own set of pros and cons. No investment ever can promise you guaranteed returns. Gold can be considered as a less volatile investment, but it also comes with its own set of risks. If you are new to the investment world, it is recommended to get your risk profile analysis done in order to get an idea of the risk that you can take in the market. There are various certified investment advisors available who can advise and manage your investment portfolios so that you can make the best out of your investments.