New Delhi2 hours ago
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Gold has crossed the level of Rs 85,000 per 10 grams to all time high of Rs 85,207. According to IBJA, the price of gold has increased by Rs 19,045 so far this year. On December 31, gold was at Rs 76,162, which has now reached Rs 85,207 per 10 grams.
According to the expert, gold can go up to 1.10 lakh rupees by the end of this year. If you are also making up your mind to invest in gold, then investment in Gold Exchange Traded Fund i.e. Gold ETFS can be a good option. It has given a return of up to 29% in the last 1 year. In such a situation, here we are telling you about Gold ETF …
ETFs are based on falling prices of gold Exchange traded funds are based on the falling prices of gold. A gold ETF unit means 1 gram gold. That too completely pure. Gold ETFS can be purchased and sold on BSE and NSE like share. However, you do not get gold in it. When you want to get out of it, then you will get money equal to the gold price of that time.
5 benefits of investing in gold ETF
- You can buy gold even in small quantities: Buy gold in units through ETF, where one unit is of one gram. This makes it easier to buy gold in small amounts or through SIP (Systematic Investment Plan). At the same time, physical gold is usually sold in tola (10 grams) prices. It is not possible to buy small amounts of gold many times on purchasing from the jeweler.
- Get pure gold: The price of Gold ETF is transparent and uniform. It follows the London Bullion Market Association, which is the global authority of precious metals. At the same time, different vendors/jewelers can give physical gold at different prices. Gold is guaranteed 99.5% purity of gold purchased from ETF, which is the highest level of purity. The price of the gold you take will be based on this purity.
- The cost of jewelery making does not come: Buying gold ETF takes 1% or less brokerage, as well as 1% charge to manage portfolio. This is nothing compared to the 8 to 30% of the making charges that have to be given to the jeweler and the bank, even if you buy coins or bar.
- Gold remains safe: Electronic gold is in a demat account, with only an annual demat charge. Also there is no fear of theft. In addition to the threat of theft in physical gold, it also has to be spent on its safety.
- Ease of business: Gold ETF can be purchased and sold immediately without any hassle. Gold ETF can also be used as a security to take a loan.
How can you invest in this? To buy Gold ETF, you have to open a demat account through your broker. In this, you can buy the gold ETF unit available on NSE and the equal amount of it will be deducted from the bank account connected to your demat account. Gold ETF is deposited in your account after two days of ordering in your demat account. Gold ETF is sold only through trading account.
Limited investment in gold is beneficial According to the expert, even if you like to invest in gold, you should still make limited investment in it. Only 10 to 15% of the total portfolio should be invested in gold. Investment in gold in a period of crisis can give stability to your portfolio, but in the long term it can reduce your portfolio returns.
