Gold: Shining Investment

Every one likes the shine of Gold. We all love to buy gold or like to invest in gold; specially Indians. Our parents always like to accumulate it in physical form whenever they have money so they can use it in their children’s marriage; but is that the only way to procure it. Do they know or gave a thought that there are other ways also available for investment in it.

In this blog I will explain three different ways by which one can invest in it:

1.) Physical Gold: Many people like to buy physical gold but I would not recommend this. One can buy it in the form of gold coins, bars and ornaments. But with some considerations:
a.) The cost of keeping it safe is really high as you have to have a locker in bank to keep it there.
b.) One has to be sure of the quality of it (Purity).
c.) There are making charges also which people eliminate from the costing of gold very often.
Therefore there is additional cost associated with the physical gold which we should remember. As in my view, from the investment perspective you should look forward to the other two options described below.

2.) Gold Mutual Funds: This is a better way to invest in it than buying a physical form of it. By this way one can invest even a small amount say Rs. 500 per month in gold and can accumulate big sum in long time like 10-20 years for their future purpose. When it is required in physical form one can go for the fund’s conversion into hard cash and can buy the physical gold (this saves your procurement and safety cost). One can buy Gold Mutual Fund by opening an account with mutual fund companies which offer these schemes in electronic form.

3.) Gold Exchange Traded Funds (ETF): One can buy Gold ETF through his demat account. So, it removes the worry of theft. One can buy it as low as 1 gram and in multiple of 1 gram. These are valued every day on the gold rate of market. Normally people who want to trade in it would like to go for this option.

I hope you all can clearly understand the other two ways are very simple and much better way of investing in gold. You can set up Systematic Investment Plan (SIP) for Gold Mutual Fund, so you can regularly accumulate gold for future purpose.

If you liked this article then please share it on Facebook and Twitter. It would be an honored gift which you would be giving to my blog.

Happy Investing!!

Vikas Agarwal
the authorVikas Agarwal
Vikas Agarwal is an IIT-Varanasi graduate in Chemical Engineering. He is the Founder and CEO of - an investment advisory website. He is a Business Development Professional but a Value Investor at heart. He writes articles on Finaacle, which focus on simplifying the art of investing and the causes of human misjudgment when it comes to investing. He also shares his experiences as an investor and lessons from some of the greatest investors of all time.


Join The Discussion

%d bloggers like this: