Sovereign Gold Bond (SGB) is a kind of government bond or certificate that is traded considering gold and the current 24 carat gold price in the market. SGB is issued by the RBI on behalf of the central government, hence it is one of the most secured gold investment options. This Diwali, you can buy SGB from the secondary market, if you do not need any jewellery and want to buy gold just for investment purposes. SGB also offers yearly 2% interest on the bond, which makes it the most lucrative gold investment option available. Recently RBI had issued its latest SGB subscription date. Check the upcoming SGB issue dates here.
(Also read: Why Investors Should Put Money In The Sovereign Gold Bond Scheme?)
Gold ETF is another virtual gold investment option by which you can avoid the hurdles of buying physical gold. Investing in gold by around 15%-20% of your portfolio is recommended by analysts to de-risk your investments. Gold ETF can be purchased by regular mutual fund mobile apps, that you use for investing in SIPs. You can invest in gold ETF monthly to strengthen your portfolio. Gold prices in the international markets and Indian markets are rising again because of inflation concerns. Although US Federal Reserve has announced tapering, and it was estimated that gold prices will fall. As an immediate result on the date of announcement gold prices in Comex December, gold future dropped around $1763/oz, but later it hiked again. In the Comex, gold rates are quoted at around $1800/oz again till 2.18 PM IST, because the investors are not ready to ignore the inflation factors, worldwide. Gold is a hedge against inflation, and in this bullish market, it is important to maintain a percentage of gold in your portfolio. For an investment purpose, gold ETF is one of the best options because it is affordable, safe, and you can make a regular investment habit from it.
(Also read: How To Invest In Gold ETF In Mobile App? Benefits Of Buying Gold ETF)
(Also read: What Are The Differences Between Gold ETFs And Gold Funds)
Gold jewellery has always remained at the top list of gold investment options during Diwali. Diwali and Dhanteras are followed by the wedding season in India, and many people naturally buy gold jewelleries for that purpose. Additionally, to encourage customers, jewellers offer discounts on making charges of jewelleries and precious stones. Recently in a report, World Gold Council has stated that in India demands for gold jewelleries have increased by 60% in Q2. Indian gold jewellers are optimistic to hold their buyers this wedding season too. The mandatory hallmarking of gold jewelleries system, introduced by the central government is also helping customers to purchase authentic and pure gold.
(Also read: Gold Jewellery Demand Has Increased By 60% In India, In Q3)
(Also read: New Hallmark Rules In India: How It Is Impacting Gold Buyers and Why It Becomes Tough For Jewellers?)
Phillip Peters is an independent journalist, entrepreneur, digital marketer and press release publisher. He has a soft spot for technology, gadgets, cryptos and writing about health and politics. He also loves travelling the world! Phillip has been working with KukaUSA full time since September 2018.