GOLD BONDS

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We provide different modes for investing in GOLD. In Indian family, there is a tradition to invest in gold, physical gold, gold bars or ornaments. Nowadays this is out dated mode for gold investment as there are lots of drawbacks in investing in physical gold like,

  • Storage risk: It is riskier to store gold at home, due to chances of theft, burglary etc.

  • Cost: physical gold is having high cost as compared with electronic gold.The cost is very low in electronic mode, and there are no making charges cost involved in ETFs, SGB.

  • Risk of Purity : while buying gold from the local jewellers you are taking risk of purity

  • Out dated designs: in case of jewellery due to change in fashion and trend the jewellery becomes out of fashion and cost for re designing etc. is too high.

  • Minimum Investment: In Gold funds minimum investment is Rs 1,000/- , and even less in gold ETFs whereas in physical gold you have to buy in weight so for 1 gm you will end up paying Rs. 5,000/- in current market.

  • Gold Ponzi Schemes: There is a ponzi schemes run by jewellers, which is not regulated and carry high credit risk.


There are different types of options are available in GOLD investments


  • GOLD ETF: ETF is known as Exchange Traded Funds, it is traded at BSE, NSE and can be bought or sold in multiple of 1 unit, rate is as per market rate of gold.

  • SGB: Sovereign Gold Bonds, issued by Government of India, bearing 2.5% interest and benefits of gold market rates, listed and traded on the stock exchanges. Hold to maturity of bonds gives full tax exemptions and listing at exchanges provides easy liquidity in case of emergency

  • Gold funds: Gold funds are issued by Mutual Funds, investors can invest either lump sum or SIP of Rs. 1,000/- pm, it also provides the benefits of Gold market rates and easy entry and exit any point of time.