Physical gold or digital gold? This is the best way to buy the yellow metal this Dussehra
Gold price on Multi Commodity Exchange (MCX) opened at ₹60,400 per 10 gm levels. But, the MCX gold rate caught buyers' support and surged to its intra-day high of ₹60,595 per 10 gm levels. In the international market, gold price today is oscillating around $1,974 per ounce levels.
Gold ETF: Gold ETFs (exchange-traded funds) are passively managed funds and a way more convenient form of investment as compared to physical gold. 1 unit of gold ETF equals 1 gram of gold and the gold prices are reflected without any additional fees. These are traded on exchanges in real-time and unlike physical gold, prices of gold ETFs do not vary state-wise.
In ETFs, the fund manager buys gold and deposits it with the scheme’s custodian. The price of gold in an ETF is the same as that of physical gold and so is the return. Also, the expenses of buying a gold ETF are much lower than that of buying physical gold.
It is ideal for investors who are buying gold solely from an investment point of view and not for personal use. Gold Mutual Funds: Gold mutual funds are open-ended mutual funds that invest in gold ETFs. The mutual fund returns depend on the performance of the ETF, which in turn depends on the performance of gold.
The NAV of a gold fund depends on that. Like ETFs, one unit here does not denote one gram of gold. Gold funds can also be invested in more than one ETF or other securities depending on its portfolio.
Sovereign Gold Bonds: Sovereign Gold Bonds (SGBs) are government securities designated in the form of gold with a basic unit of 1 gram. The Reserve Bank of India issues sovereign gold bonds on behalf of the central government in compliance with the Government Security Act of 2006. They are considered an alternative to holding
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