Gold price likely to touch Rs 70,000 in 2024; Top gold ETFs, how to invest in them

economictimes.indiatimes.com:

gold is anticipated to reach Rs 70,000 per 10 grams in the local market. This projection is attributed to a stable rupee, geopolitical uncertainties, and the deceleration of global economic growth, as indicated by experts.

Buying gold in tangible or physical forms such as jewelry, gold coins, or bars can be significantly expensive. In contrast, possessing it in a paper form like gold exchange-traded funds (gold ETFs) is more cost-effective, with prices aligning closely to the actual value of gold.

Also read: 6 ways to buy and invest in gold

Hence, if your goal is to capitalize on the potential increase in the value of gold in the future, opting for the ETF route is the solution. Comparable to mutual funds, where the investment's value mirrors that of the underlying securities (equity or debt), in the case of gold ETFs, gold serves as the underlying asset.

What is gold ETF?

As an exchange-traded fund, the gold ETF is exclusively tradable on stock exchanges, eliminating the need for maintaining physical gold. Moreover, unlike jewelry, coins, and bars, which involve substantial initial buying and selling charges, the gold ETF incurs significantly lower costs. Another notable benefit is the transparency in pricing. The purchase price closely aligns with the actual gold price, making it a benchmark for the physical gold price.

How to invest in gold ETFs

Gold ETFs are actively traded on the cash market of the National Stock Exchange, akin to regular company stocks, enabling continuous buying and selling at prevailing market prices. To participate, you'll require a trading account with a stockbroker and a demat account. Whether opting for a lump-sum purchase or periodic investments through systematic investment plans