Beginner's Guide to Investing in Gold - India

You can purchase gold coins or bars from reputed jewellers, banks (SBI, HDFC, ICICI) or government-certified outlets. Look for BIS hallmark certification. Available in denominations from 0.5 grams to 100 grams. Given the making charges involved in jewellery, avoid gold jewellery for investment (unless necessary). Making charges is the designing cost of the jewellery and when you sell the jewellery, what you get paid for is gold and not making charges.

Gold ETFs have gold as the base asset and change price as per the value of gold. You can invest in them from your Demat and Trading account and buy Gold ETFs like SBI Gold ETF or HDFC Gold ETF during market hours They are considered the best option for beginners. They are cost efficient and inculcate systematic investing. Moreover, it is investing in pure gold without the hassle and worry of storing it.

RBI issues SGBs periodically (6-8 times per year) through banks, post offices and stock exchanges. Through SGB, you have to buy minimum 1 gram or maximum 4 kg gold per person annually. You earn an annual interest of 2.5% on the investment. The holding period for these bonds is 8 years, but a premature exit option is available after 5 years. It is an excellent investment option for long-term investors (5+ years) who value interest income and want gains exempted from taxes (if held till maturity).

You can buy this through various fintech platforms. Start with ₹1 and accumulate gold in a secure digital vault. You have an option to convert to physical delivery when you reach 1 gram level.

Good for absolute beginners wanting to start with tiny amounts. For experienced investors, ETFs offer better value.

These invest in Gold ETFs through a mutual fund structure. No demat account is needed to invest in these mutual funds. However, they have higher expense ratios (1-1.5%) than direct ETFs. They are convenient if you already invest in mutual funds, otherwise, Gold ETFs are more efficient.