Ways of Investing in Gold
A growing range of methods now allows investors to either buy gold, or simply gain exposure to gold price movements. From gold coins, online accounts, exchange traded funds and complex financial products, to mining stocks, the most appropriate gold investments will depend upon the investor’s specific requirements and outlook.
Investing in Gold
- Coins and bars
- Exchange Traded Funds (ETFs)
- Futures and options
- Warrants
- Gold accounts
- Gold Accumulation Plans (GAP)
- Gold Mining stocks
- Gold Certificates
- Gold orientated funds
- Structured products
Five best ways to invest in Gold
Buying physical gold: You can buy Jewellery from shops which sell hallmarked ornaments, Gold coins or Gold bars. Coins can be brought either from Jewellers or from banks.
Gold ETF: ETFs have come to be a very good way of investment for those who don’t want to keep physical Gold for safety concerns. All you need to have is a Deemat account. Many Gold ETFs are available in the maket where you can buy paper Gold. It is the easiest and hassle-free method to maintain Gold.
Trading through commodity exchange: You can buy Gold through Gold futures from MCX, NCDEX, ICEX. Here too you will have to open a Deemat account. By paying a minimum brokerage fee, you can trade in Gold futures.
Buying through e-Gold : e-Gold is also an electronic form of holding Gold. It is slightly different from buying ETFs. Here you are directly the owner of the Gold while in ETFs the holding company is the owner of the Gold. The process is more or less similar to buying ETFs.
Equity based Gold funds : You can invest in mutual fund schemes which has its exposure in companies engaged in Gold mining, processing, extraction and marketing. All you need to have is a Deemat account.
