Which one is better for investing in gold jewelry gold ETF or sovereign gold bonds


Corona is in awe in the stock markets worldwide recovering from the crisis. During the Corona period, when the condition of these markets was poor, the dollar and gold attracted the most investors. People invested a lot of money in physical gold, gold ETFs and sovereign gold bonds. Last year, a huge net investment of Rs 6,657 crore was made in Gold-ETFs due to increased investor interest in Gold Based Exchange Traded Fund (ETF) as a safe investment. The Modi government has once again presented another opportunity to invest in gold bonds from today i.e. January 11. In such a situation, it is important for you to know that if you want to invest in gold itself, then where to do it so that you can get more returns and investment is also safe….

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Explain that gold is a more convenient physical gold than ETF and sovereign gold bond. That is, it is easy to keep and sell gold bought by jewelers. However, gold ETFs and sovereign gold bonds also do not require purity checks like physical gold.

Physical gold

According to the National Stock Exchange, physical gold returns less than its true value. It is easy to keep it but the risk of theft is high. Not only this, if its hallmark is not there, its purity is also doubtful. As far as selling it is concerned, it can be easily sold by any jeweler. On this, banks also give loans easily.

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Gold ETF

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Like physical gold, it also gets less returns. However, it is much safer than gold jewelry kept at home. As far as purity is concerned, being in electronic form one can fully trust its accuracy. It is charged long-term capital gains tax after three years. Loan is not available on this. It can be sold at any time on the exchange and the cost of keeping it is also very low.

Sovereign gold bond

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This is the best in terms of returns. The higher the price of gold, the greater the actual return. It is safer than physical gold. As far as purity is concerned, its accuracy cannot be doubted due to its electronic form. It will be subject to long term capital gains tax after three years (Capital gains tax will not be levied till maturity) while you can use it for loan. If you talk about redemptions, you can redeem it anytime after five years.


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