For diversification across assets, most financial planners suggest investing within the brass up to 10 percent of one’s investment portfolio.But buying physical gold within the sort of bijou or gold coins comes with its share of concerns – from storage to high making charges, etc.
“All three products — Digital Gold, Sovereign Gold Bond, and Gold ETF – are digital ways of investing in gold,” says Renisha Chainani, Head of Research, Augmont – Gold for All.
But, before putting your money in anybody of them, confirm you recognize a number of the essential differences between them. So Liquidity is that the major differentiator.
The Lock-in period for SGB is 5 years and there’s a hefty transaction cost to be paid if sold before maturity. While for Digital Gold, there’s no such lock-in, it might be sold the very next day.
With digital gold, you get the particular value of gold which is stored in physical form during a vault. Digital gold comes with insurance of the total value invested, unlike SGBs.
Digital gold doesn’t attract any cost except a one-time levy of three GST. You don’t have to hold a Demat account to shop for digital gold, like within the case of gold ETFs and SGB.
Sovereign Gold Bonds are issued by the govt and therefore the buying and redemption price is linked to the value. SG bonds mature after 8 years, however, there’s a premature exit allowed after 5 years, and that they are traded on the stock exchanges.
One may additionally buy gold bonds, which are issued earlier, from stock exchanges. The minimum investment in SGB is one gram while the utmost is 4 kg of gold in one yr.
Gold ETF is sort of like fund schemes where the underlying asset is that the gold is like stocks in equity mutual funds and that they represent paper-gold because the investment is held in your Demat account. Unlike SGB and Gold ETF, digital gold through e-wallets or apps is way cheaper.
When it involves affordability, you’ll start investing in digital gold as low as Re 1. “Digital gold is super affordable.
The simplest part about buying gold online is that you simply can buy it with a minimum of Re. 1 or 0.0005 gm, which is unquestionably impracticable if you purchase it physically.
It also eliminates the price of constructing charges which you’ve got to pay while designing any kind of jewelry,” adds Renisha. So, where does one head to buy gold digitally?“Digital gold is super affordable. The simplest part about buying gold online is that you simply can buy it with a minimum of Re. 1 or 0.0005 gm, which is unquestionably impracticable if you purchase it physically.
It also eliminates the price of constructing charges which you’ve got to pay while designing any kind of jewelry,” adds Renisha. So, where does one head to buy gold digitally?
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