Are you looking to invest in gold but don’t know where to start? In this video, I’ll cover 5 different options for investing in gold in India: Sovereign Gold Bonds (SGB), Digital Gold, Gold ETF, Gold Mutual Fund and Physical Gold. I’ll be discussing the pros and cons of each option in a comparison format as we look at how each of these gold instruments measure on the basis of its availability, risk, returns, costs, minimum requirement, liquidity and taxation. This information will act like the ultimate gold investment guide to you which’ll help you make an informed decision about how to invest in gold irrespective of whether you are a beginner or an experienced investor
The 5 gold investment options I have covered in this video includes:
1. Sovereign Gold Bonds (SGB) are government securities denominated in grams of gold and its value is pegged to the price of gold in the domestic Indian market. SGBs are rather popular in India as they come with low risk and offer an interest of 2.5% per annum which none of the other gold products offer
2. Digital Gold is an easy and convenient way to buy and sell gold online. It offers 99.9% purity of gold and can be bought from many financial apps. The big risk with digital gold (or e-gold as it is sometimes called) is that it lacks regulatory oversight (RBI and SEBI don’t regulate digital gold currently)
3. Gold ETFs are exchange-traded funds that invest in physical gold and can be bought from your trading account. These can be bought during trading hours and carry an expense ratio of 0.5 to 0.7%
4. Gold Mutual Funds are professionally managed funds that invest in various gold-related assets, primarily gold ETFs
5. Physical Gold is the traditional form of holding gold which includes jewellery, coins, bars, bullion etc. Indian households own a lot of physical gold and it is estimated that they hold over 25,000 tons of gold which is about 12% of all the gold that has been mined since the start of mankind
👉 Video Chapters:
00:00 Gold Gold Everywhere
00:56 Benefits of Investing in Gold
03:09 1. Availability of Gold
04:14 2. Risks in Gold Investment Products
05:59 3. Minimum Investment for Gold
06:51 4. Gold Returns and Costs
07:34 Expenses in Digital Gold
08:51 Gold Mutual Fund Expense Ratio
11:21 5. Liquidity of Gold Instruments
13:13 6. Tax on Gold Investments
15:20 Shankar’s Viewpoint
👉 Resources and Reading Material:
‣ This tweet thread by BasuNivesh says gold taxation on premature redemption is tax-free: https://twitter.com/BasuNivesh/status/1633743582950744065?s=20 (please consult a tax advisor)
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#sovereigngoldbond #goldinvestment #goldinvesting #digitalgold #goldetf #goldmutualfund #gold
Disclaimer: I am not a SEBI registered investment advisor or research analyst. The content posted on this platform is purely for educational purposes and none of it constitutes investing or trading advice. Viewers should do their own research and diligence before investing or acting on the information presented
25 Comments
SGB is the answer you are looking for.
Which is better: buying SGB from RBI or secondary market?
Can you also post the similar video for silver? Also, I was planning to buy monthly physical gold and silver, when the government can add more tax in this uncertain environment. please suggest
If say, I buy from RBI via Zerodha, how can I redeem at 8 years or between 5 to 8 years? Can it be done via Zerodha or via RBI?
Same way for those bought from secondary market?
Great insights on gold. I only invest in SGB, enjoy gold price growth, tax free and 2.5% interest, supported by government. I availed loan when needed. Blocking money for 8 years, so you would not loose for sometime unnecessary expenses. What else you need in life?
I am sharing this on my family group where elders keep asking me for sgb vs other modes…. thanks!
And pls also make one for investment in silver… topics like: is it worth it? best way, some facts and figures etc…. thanks in advance
DSP World Gold Fund is another way to play the gold theme.
👍
I personally invest 10% of my SIP amount into edelweiss gold and silver fund of fund. Gives me exposure to 5% of gold and silver each in the entire portfolio. Every quarter the fund rebalances the ETFs held to be 50:50, this also helps in capturing the change in gold-silver ratio. At the time of rebalancing, if gold is overvalued compared to silver, profits will be booked from the gold side and get invested in silver without having to realise capital gains and vice versa for silver. It has already given me 7.8% return over the last 2 months. If asset rebalancing is something one does, then fund like this will help.
You did a related video on silver with ET money. How about a refreshed one o'er here Mr. Nath?
This video is pure gold. 😉
I've not invested much in gold but this year I plan to do so.
Imo the returns of SGB look attractive but its moderate liquidity is a concern. Everyone likes it because of govt backing but that is the risk too. We never know when the govt will tinker with the 2.5% additional interest when it feels like just like it plays around with PPF interest rates.
By the looks of it a Gold ETF is better with physical backing of gold and high liquidity.
Excellent video
Golden information shankar Nath😊
Great video 🎉
Awesome video.
Really nice appreciable content as always ❤
Which instrument is better if we plan to hold more than 20 years, Gold ETF or SGB ?
Awesome analysis
Sir, you completely missed the point about gold being a form of insurance that comes into play especially when the system collapses (or currency hyperinflating – ask the Zimbabwean, Lebanese, Turkish, Sri Lankan, Pakistani people in the recent past) , facination of the masses is tied to this to an extent i guess.
Another you tuber – Sango ji- had made the point that all other investments are tied to the system, so preferable that this should be outside the system where there is no counterparty risk, i.e., to say rhat physical form trumps digital forms on this aspect alone, though it has its deficiencies as enumerated by you..
Great video! My question – What should an investor do (after 8 years) post SGB maturity if Government discontinue SGB scheme.. then How do you suggest to hold more than 20 years, Gold ETF or SGB ?
Gold talking about gold 🪙🥇🔥
Thank You Sirji!
What do you feel about instruments like Gullak Gold + which allow you to lend your digital gold and earn extra 5%?
Thanks for this video, I was researching for video on gold.
I think you missed something on gold etf that is one can exchange units with real gold bars with same company whose etf they own. If you can put up a video around exchange would be great..