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Five ways to invest in gold

Last Updated: Apr 20, 2020, 06.30 AM IST

Summary An investor can invest in gold in different ways such as by buying jewellery, gold coins or bars. Here are five ways to invest in gold.

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Digital gold is a mode of investing in physical gold through online platforms.
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1. Gold can be bought in the physical form as jewellery. However, this form involves concerns about quality, safety and high costs.

2. Physical gold can also be bought as coins or bars from jewellers, banks and other avenues with hallmark for purity but still have concerns about safety.

3. Exchange Traded Fund is a low-cost way of owning gold on paper that can be bought and sold on the exchange when required and is subject to tax at redemption.

4. Sovereign Gold Bonds are issued by the government and are available for purchase during intervals when they open up every few months and are good for long-term gold investment and are tax-free on redemption.

5. Digital gold is a mode of investing in physical gold through online platforms. This physical gold is safely stored centrally which can be redeemed as physical gold or be can resold to the vendor.

(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
(Disclaimer: The opinions expressed in this column are that of the writer. The facts and opinions expressed here do not reflect the views of www.economictimes.com.)

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