In the modern world wealth is considered with the amount of gold that individual hold. And bet way is to invest in gold. You might not be agree because most of you will consider Land as the certification of wealth.

While some will consider stocks or equity, bonds, and currency. But all these wealth related products are directly or indirectly connected with gold.

Gold is considered as one of the top priority and most valuable, most admirable wealth symbol. In ancient times, gold was considered a sign of prosperity.

And even today it is almost the same, only a little bit of its definition has changed. From time immemorial to the present day, gold is considered the most important currency and investment in the world.

Babylon, the world’s richest city, is a living example of this. Even in the present time if you start accumulating gold then it can become your only source of prosperity.

As the world has progressed, technology is also being used to invest in and buy gold. In today’s time, you do not need to go to any goldsmith to invest in gold, you can also buy it in a modern way with a demat account.

Today I will give you information about all the traditional and modern ways of investing in gold.

How to Invest in Gold

Friends, investing in gold means buying and keeping gold. Which you can use as a asset in the coming time and can use it in your use.

1. Purchase Jewellery

You just go to the Jewellery shop and purchase some gold items. It is the traditional method to invest in Gold.

Over the period of time price of gold will increase. And your investment price will become 10X, 100X or thousand times.

You can’t ignore the old people. They used to store their gold coins, or gold pots in a big boul or mud pot. And even after this, it used to be buried by digging a deep pit in the soil.

The main reason for which was to protect it from thieves and to secure the future.

At that time, those gold currencies were not worth much, those gold utensils were also not worth much. But in today’s time, if a person gets this type of treasure, then he becomes the richest man.

So friends, the main reason for this is the increase in the price of gold over time.

But there are many flaws in buying jewelry from goldsmiths, which are as follows.

• You have to pay tax while purchasing gold jewellery.
• You have to protect it from thieves and keep it in a safe place.
• Goldsmith can cheat you also he can tamper you with its quality.
• Even after selling it, the goldsmith will buy me for less money than you.
• Keeping more than a certain amount of gold with you can also prove to be dangerous.

Purchase sovereign gold Bond

Now let us see another way to buy gold, we know it by the name of Sovereign Gold Bond. Sovereign gold Bond are bank certificate data issued by Reserve Bank of India.

Sovereign gold Bond are some kind of piece of paper that are equivalent to Gold amount.

Suppose you purchase 1 gram gold equivalent certificate then the value of the certificate is equal to one gram gold.

Main benefit of this gold bond is it is completely pure and safe.

No thief can steal it and you also get 2 to 3% annual interest on buying it. They are sold by RBI for a certain time of period like 7 years.

When you want to get cash or Gold after maturity period RBI will give you that.

The main flaws for buying sovern gold bond are as follow:

• You can’t sold it before maturity period.
• Interest income is taxable.
• You have to wait for SBG release.

Benefits of SBG

• Fix income from gold.
• Easy to buy and purchase.
• No tax on selling SBG.

Purchase gold ETF from exchange

ETF is known as exchange traded funds. It is same as SBG. But you can purchase and trade it on any stock exchange like NSC or BSC.

You will not get any interest on purchasing ETF but you can trade these ETF as stocks. Suppose price is down just buy it if price is up just sell it and earn profit.

You can get pure 24 Carret gold in exchange of your ETF any time you want.

Conclusion

Gold investment is very simple and profitable business. You can invest in gold by purchasing from jewellery shop, from bank like SBG, or from demeat account like stocks.