Gold Investment Guide

By Author: oropocket digital gold
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1. Digital Gold

Invest small amounts – Gold investment was traditionally associated with a sizable sum of money. With ten grams being sold at close to Rs.50000, investors needed a reasonable sum before they could invest in the precious metal. With digital gold, you can invest as low as Rs.10!
Maximum security – Most companies offering digital gold ensure that it is stored in secured vaults and is insured.
Liquidate within two days – If you own digital gold, you can sell it anytime and receive funds in your account typically within two working days.
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Zero making charges – Unlike jewelry or other physical gold options, digital gold has zero making charges.
View your gold holdings online – If you invest small amounts regularly, you will soon have a sizable amount of gold in your account. With digital gold, most platforms allow you the option of viewing your holdings online.
Convert to physical gold – Many digital gold platforms also allow you to convert your digital gold ...
... holdings into physical gold on demand.

2. Gold coins or Bars
To save on ‘making charges’ that are applicable to gold jewelry, many investors opt for gold coins or bars. Since these coins/bars do not require skilled artistry, the making charges are not applicable. Today, you can buy these coins or bars from jewelers, banks, ecommerce websites, and many non-banking finance companies.

3. Gold Savings Schemes
Jewelers across India offer various schemes to help people invest in gold in installments. Typically, a jeweler allows you to deposit a pre-determined amount every month for a specific period. At the end of the tenure, they can buy gold from the same jeweler at a value equal to the amount deposited plus a bonus (if offered by the jeweler). The gold can be purchased at the prevalent gold price on maturity.

4. Gold Sovereign Bonds
Issued by the Reserve bank of India (RBI), Gold Sovereign Bonds are the safest way to purchase digital gold. The RBI issues them on behalf of the Indian Government. These bonds have an assured interest of 2.50% per annum. The bonds have a lock-in period of five years and an overall tenure of eight years.

5. Gold Mutual Funds
These funds invest in gold reserves directly or indirectly. They invest usually invest in stocks of mining companies, physical gold, and stocks of gold producing and distribution syndicates. The performance of these funds is usually linked with the performance of gold prices in the country.

Tax Rates for Gold Investments
Keep yourself abreast of the tax rates applicable for profits earned from gold investments. In India, when you sell gold, you attract capital gains tax. If you have held the gold for three years or less, then the gains made will be called short-term capital gains or STCG and will be taxed at the income tax slab applicable to you. On the other hand, if you hold the gold for more than three years, then the gains will be called long-term capital gains or LTCG and taxed at 20%.

Things to Keep in Mind Before Investing in Gold
The performance of gold stocks and mutual funds can differ from that of physical gold. The price of gold is determined by a lot of factors including the demand and supply of the commodity, economic conditions of the country, etc. While a company belonging to the gold industry gets directly impacted by the change in gold prices, there are other factors that influence the price of stocks of these companies. Hence, before buying gold stocks or mutual funds, ensure that you research the company or the scheme thoroughly.
If you are investing in physical gold, then ensure that it is in a place that is safe and secure.
Gold prices tend to move inversely to the stock markets. However, it is not always true. Hence, it is important to ensure that you have an investment portfolio that is designed to weather all storms.

"OroPocket is an asset-backed banking solution that enables users to invest in Digital Gold and Silver - as a safe hedge against inflation and at the same time utilize these investments for day-to-day transactions via UPI and asset-backed cards. "