Different Forms of Gold Investment Schemes


Gold is a form of liquid asset which is not only used to make jewelry but also support the owner to sustain a financial crisis. In India, a significant amount of gold is possessed by the common mass in the form of jewelry. Indian investors also look for different investment schemes of gold as the economy of India is unstable; investing in monetary commodities can be risky.

Buying gold jewelry can also be a kind of investment as it can be given as collateral to the gold loan lenders. There are various other ways of investing in gold that can yield outstanding returns. The use of Gold Jewels is not only done as jewelry or some wearable stuff. Also, gold is sturdy in times of financial emergency. 

Also, we must note that the value of gold jewels holds a lot of value. A gold will be rated on the basis of its weight.. It is always advised to the customers to weigh and measure the value of gold on a regular basis. 

Leading forms of gold investment

Here are the leading forms of gold investment that is chosen by most of the investors in the country. If you are willing to put your money on gold assets, make sure that you know the type of gold investment scheme that you are putting your money. 

Gold coin scheme

The gold coin scheme is chosen by the investors who have the goal to buy gold bullions at a lesser price when the base rate is low and sell it when the rate increases. In India, there are standard gold coins that are available from the MMTC centers. All the coins and bars are of 24 karats or 22 carat gold rate and comes with the hallmark. Moreover, the bars and coins come in a tamper-free container. Its benefit is that it is easily recognizable by buyers. 

Gold jewelry

Gold jewelry is one of the safest forms of investing in gold. You can wear it with pride as well as get a loan against it quickly when necessary. As the gold loan lenders do not take gold bullions, it will always be a safe option to invest in ornaments. Remember that many organizations provide gold loans on reasonable interest rates, you can also expect to get outstanding loan capitals.

The capital of the gold loan depends on the worth of the pure gold present in your jewels. You can expect to get more capital money on keeping hallmarked ornaments as collateral.

The total summation of the above two forms another category :

Gold Monetisation Funds :

The working of this plan can be compared to regular gold investment. The value of gold is measured in terms of its weight, along with appreciation. There is flexibility as the gold can be deposited in the form of bars, coins, or direct jewelry. 

The most significant advantage which falls into place is about having a regular interest rate. This also keeps on adding the savings. Investors can choose the tenure as per their comfort- Short term, Midterm, or a long term medium. 

Exchange-Traded Funds on gold

When you invest in the ETFs of gold, it becomes an asset of the stock market. As an investor, you should treat these funds very carefully as they carry a lot of costs. You can purchase these traded funds against money, and it would be lower than that of actual gold. If you are a new investor, try investing in just 1 gram gold. When it comes to the price, ETFs are available in the market at a reasonable cost that nears to the value of gold. 

Digital gold

In India, the availability of digital gold has allowed investors to invest in gold online. Both bullion and jewelry are available in case of the digital gold application. MMTC and PAMP jointly provide an opportunity for people to invest in gold. It would help if you visited a bank or NBFC to know the basics of investing in digital gold. 

Sovereign gold bonds

The sovereign gold bonds are one of the leading digital ways to invest in gold. The government provides the opportunity for people to invest in gold bonds via online sites. One can easily purchase gold and sell it according to the wish. You must be aware of the rules of buying gold bonds while buying them. Expect to face several conditions while maintaining the gold bonds. 

As an investor who desires to put money into gold has to keep excellent knowledge of how the gold prices in the market are fixed. Moreover, one must also know the procedures of managing the investments. In some of the cases, a buyback option is also available. 

How to choose between different investment options?

The cost structure of different schemes vary. In the case of the physical form of gold, such as bars or coins, the cost can come anywhere around 10%. In the case of a Sovereign gold loan, there are no entry fees. ELT Gold loan has a small amount of about 1%. 

It is your hard-earned money. So it would help if you answered these questions before investing in gold. Why do people invest in Gold? What are all the benefits of investing in gold?

Why should we invest in Gold?

Is it worthy of the right step? 

A good investment can be defined in terms of smart investment with a good ROI.

Investing in gold can help us in 2 ways

  1. Firstly, as per looking at the trend of the economy, the return on gold investment is in line with the level of inflation. 
  2. Also, we always advise investors to undertake a diversified form of investment. Equity funds are still a part of the portfolio. The trend or graph for investments will remain constant. In such a case, adding gold investment is a viable option. The moment rate of equity will fall; at the same time, the equity investment will increase. 

Also, as per a recent study, it is shown that the investment in gold can fetch good returns as compared to other investment options. 

Therefore, make the right choice by analyzing all the pros and cons. A holistic investment is the most suited form of investment. We hope that you gain more clarity in terms of selecting the right kind of gold loan investment.