We Indians have been interested in the yellow metal since eternity, and it will hold true until the end of time. However, all of our gold purchases mostly consist of jewellery that we love to buy, wear, gift, and receive. There are so many other ways through which we can use gold as an investment and earn profits out of it. Yes, you read it right.
Here are some modern ways to invest in gold other than buying and keeping jewellery, to earn from your favourite yellow metal:
Exchange-Traded Funds backed by gold can be thought of as mutual funds that invest in gold, and their units are listed in the stock exchange. You need to buy ETFs from the stock exchange, for which you need to have a Demat and trading account and pay a brokerage fee.
Gold bullion essentially means gold coins, bars, and ingots. Bullion is legal tender held by every country’s reserves by the respective central bank, which it uses to settle international debt or stimulate the economy. Bullion is one of the best hedges against inflation on investment portfolio.
You can buy bullion in paper form or physical form. The best way is to buy it in physical form from Augmont app, wherein your physical gold is safely stored in secured and insured vaults.
You can also invest in bullion through banks, or through third-party depository, or buy physically and store at home.
SIP is the best way to accumulate gold in a disciplined manner while not having to shed a lump sum amount to acquire gold at once. The idea is to shell out some amount every month in a systematic way and get the bigger amount at the end of the tenure.
The best thing about Augmont Gold SIP is that you have the option to exit anytime during the tenure if you opt for flexi SIP. You can start with a sum as small as Rs. 1,000 every month, and get the gold delivered at your doorstep at the end, or middle of the tenure, depending upon the plan.
The biggest benefit of Augmont gold SIP is that you don’t need to have a demat account, or pay any extra charges.
Gold Funds of Funds
A gold fund of funds will invest on your behalf in a gold Exchange Traded Fund (ETF). The best thing about a fund of funds is that you don’t need to open a demat account and can invest just like you do in a Mutual Fund.
This one is a costlier option though, as you need to pay the AMC for the ETF and for the FOF scheme as well.
Buying & Selling gold like stocks – Digital Gold (Vaulted)
Augmont gold gives you daily update of live gold and silver rates. You may also conveniently buy and sell gold for trading and earning profits. The moment you want the physical ownership of the gold you own, you can ask for doorstep delivery at a very nominal shipping charge.
Now that you know so many other ways of investing in gold, which ones are you going to opt for this year? Share your other gold investment ideas with us in the comments section.