What's the best option to invest in gold?

Just an innocent mistaken comma bro, no need to question my nationality :slight_smile:

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I find Digital Gold to be the best option. It is because of -

  • Digital gold investment can be bought online and is stored in insured vaults by the seller on behalf of the customer.
  • It also helps us overcome all the aforementioned issues of physical gold purchases.
  • All you require is Internet/mobile banking and you can invest in gold digitally anytime, anywhere.
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The Best Ways To Invest In Gold Without Holding It

  • Gold Receipts.
  • Derivatives.
  • Gold Funds.
  • Gold Mining Stocks.
  • The Bottom Line.

Only problem I have in digital gold is spread. The difference between buy and sell spreads in most apps is huge. Something like 3-3.5% or even more. And since there is no evolved market, you will be always at mercy of the app which you have used to buy.
On that front I find gold MF much better option from liquidity point of view.
Off course, SGB is great option if you are not looking at liquidity.

I also faced the same query, but since you are buying and selling the same instrument (having some benchmark) you are not impacted. If you buy India ETF and sell in it International ETF then its a problem (just hypothetical scenario).

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Hum_Sa, I was referring to digital gold which is sold on apps like paytm, phonepe. Here there is no market as such and you buy at whatever rate app offers and sell back to them at whatever rate they give, no choice and hence large spread.
I agree with your gold etf statement and I said the same in later part of my past with respect to Gold MF (which is gold ETF)
But digital gold sold on apps is way to expensive.

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Moreover if you look at gold as asset then physical is considered as best … Physical is difficult to buy and also sell and hence increases our holding period. Even stocks are to be held for long then why not Gold :slight_smile:
SGB is good since no tax whether you buy from primary of secondary the condition of no taxation is redemption should be with RBI only.

Excellent point.

Another excellent point.

You can buy gold jewellery or you can invest in golf through an online broker. Most people go for digital gold and it’s convenient too.

Sgb is by far the best option. All the reasons justifying other alternatives are better are really not valid except for may be liquidity.
Feel bad for @siva because he had to just discontinue justifying his points (Most Valid)
Totally agree with the points he mentioned. If you guys don’t see it, you are really missing out on 2.5percent minimum per annum. Considering the compounding effect over a long horizon this will make huge difference to your Net worth.

Coming “back” to the original topic of best option to buy gold; I am much worried about the “slippage” in buying various kinds of golds. If you buy physical gold, even for coins, 8-10% is charged as making charges plus 3%GST. Also, when spread between buying and selling prices are taken into account,15~20%value goes into thin air after buying. Same is for digital gold- transaction charges, gst and spread- and again making charges if you decide to take physical delivery.

How to minimise this slippage?

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In my view & experience, I find GOLDBEES as the best option. Negligible transaction cost, you can make your strategy, flexibility to buy at your prices & book regular profits/re-enter. Good volumes unlike other options where you are stuck for a long period & cannot leverage the ups/downs…

As per me, gold as an asset is non performing. It is a store house of value. I would invest in business which sells and buys gold. For instance gold jewellery companies and gold loan companies are proxies to gold. Their share price move based on gold rate movement.

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SGB is a Good Option , even i can use cash colleterial , and every month i am getting 2 % return from gold, recently i receive dividended as 12000+ its free money from gold , for proof , i am holding 200 grams now , in future i wan to accumulate 1000 grams in SGB its my target

Even i am treating this gold holding is my portfolio hedging - any crisis in future gold is the first asset to appreciate

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I don’t think people should take the risk of holding gold for short periods of time. It is a volatile asset…

@rupeshmandal Is Axis Triple advantage fund is good MF to invest? Gold is one of the asset in that