So do you know that 11-12% of the world's gold is with Indian women? But is this the right investment option? Should we really think of it as an investment? So is buying gold jewellery the only option to invest in gold? Let's find out.
Firstly, you have to be careful about the amount of things you buy while wearing gold. The fear of it falling or getting stolen is always there. Secondly, you have to pay 3% GST for making charges on it. This makes buying gold very expensive. You can't buy it in small quantities which means you can't buy it for ₹100 or ₹200. And the biggest loss is that you don't get any regular income on it. That means you don't get any interest payment in a year or a month.
Digital gold is here to overcome these shortcomings. Imagine that if you are buying a gram of gold, you have to pay Rs.5000. But if there are 5 more investors in digital gold who want gold then their value increases to 5 people. That means now 5 people can afford the same gold. So there is no danger of safety in digital gold. Because the company from which you bought digital gold, it gives you the opportunity to buy gold for ₹100 or ₹200.
It gives you the opportunity to buy gold. The safety and security is also the responsibility of that company and you don't have to pay any making charges on it because these are digitally held coins. But you have to pay 3% GST on it and you don't get any regular income on it.
To remove these shortcomings, there is another option to buy gold which is a sovereign gold bond. So a sovereign gold bond gives you 2.5% annual interest payment and the good thing is that you don't have to pay any GST on it. Like the same gold, you get the same capital appreciation on it. Still wondering what could be the best mode of investment in gold? Don’t just wonder, click to read more about Sovereign Gold Bonds: https://help.upstox.com/support/solutions/folders/278074