Akshaya Tritiya is considered as an auspicious occasion of buying gold. The lockdown in several states this year due to the Covid-19 pandemic, however, has dampened the mood of gold buyers this Akshaya Tritiya.
There are several ways of investing in gold – Physical Gold, Sovereign Gold Bond (SGB), Gold Mutual Fund (MF), Gold ETF, Digital Gold etc.
Buying gold in the form of gold jewelleries, coins etc are still a preferred way of buying gold in India. However, due to the Covid restrictions this year buying physical gold is a problem. Also, keeping physical gold safe requires spending money on locker rent, insurance etc. Gold jewelleries also involve substantial making charges.
Sovereign Gold Bond
Sovereign Gold Bond (SGB) is considered the safest form of investment in gold. Apart from safety, it also provides 2.5 per cent interest on the investment amount. SGB is however a long-term investment instrument and investors’ money gets blocked for 8 years. Although, SGB are tradable in the secondary market, liquidity issues are there. There is also a cap on total investments in SGB in a financial year.
Gold Mutual Fund/Exchange Traded Fund (ETF)
Gold MF and ETF are another form of investment in paper gold. Such schemes invest in the shares of gold miners, gold refiners, jewellers etc. Gold MFs and ETFs provide diversified ways of investments and also have considerable liquidity. However, investments in gold MF involve higher expenses than an ETF, while a demat account is needed to invest in an ETF. These investments are also subject to market risks.
Digital gold provides an investor ownership of gold in digital format. The actual gold is kept in lockers under the issuer’s custody. So, the investors don’t need to spend any money to keep the gold safely. It also provides the investors an opportunity to make fractional investments.
One of the renowned issuers is Digital Swiss Gold that offers an easy, cost-effective platform offering digital, mobile and usable physical gold ownership with 21st century technology.
- Gold purchased through Digital Swiss Gold meets the highest standards, being Swiss refined, of 0.9999 fineness and compliant with all London Bullion Market Association (LBMA) gold bar specifications.
- The physical gold is stored in fully insured non-bank Brink’s vaults in Zurich Switzerland.
- All gold holdings are independently audited by Bureau Veritas.
- The transparent pricing structure of DSG involves no hidden fees.