Gold Investment : An Ultimate Hedge Against Inflation

Published : 31 July 2023

By : Sachin Gupta

Physical gold

Bullion, coins, and jewelry are the three primary forms of physical gold investment. You'll typically deal with dealers other than traditional brokerages when buying physical gold, and you'll probably have to pay for storage as well as insurance for your investment.

An exchange-traded fund (ETF) that tracks the domestic physical gold price is known as a gold ETF. They are passive investment tools that invest in gold bullion and are based on gold prices.

Mutual funds that invest directly or indirectly in gold reserves are known as gold funds. Investments are typically made on the stocks of mining companies, physical gold, and syndicates that produce and distribute gold. It is a practical way to invest in a commodity without having to buy it in physical form.

Sovereign Gold Bonds

Government securities called SGBs are valued in grams of gold. They serve as alternatives to holding actual gold. The issue price for investors must be paid in cash, and the bonds must be redeemed in cash when they reach maturity. The Reserve Bank issuing the Bond on behalf of the Government of India.

Digital Gold

Digital gold is a virtual method of purchasing and investing in gold that does not require physical possession of the metal. It is available for purchase online. The minimum purchase or sale price is one rupee.