Gold is very important because it is an extremely valuable metal that also makes for an excellent investment. Although purchasing gold on the occasion of Dhanteras is seen to be valuable, investing strategies changed along with the times.
These days, investors are increasingly drawn to digital gold, ETFs, and SGBs in addition to actual gold, particularly during Dhanteras and Diwali. Thus, you may consider the following five strategies for your Dhanteras gold investment:
- SOVEREIGN GOLD BONDS
SGBs are government-issued securities that guarantee interest rates and gold price growth. They are great for risk-averse investors looking for consistent income because they offer tax advantages.
It should be noted by investors that holdings in mutual funds, exchange-traded funds (ETFs), and futures contracts cannot be exchanged for actual gold.
- GOLD ORNAMENTS
Those who have more of a classic taste might profit from both investing and decoration when they buy gold ornaments. But take into account storage expenses, charging, and resale value.
- GOLD MUTUAL FUNDS
Investing in gold ETFs provides a diversified approach to gold investing through these mutual funds. They are appropriate for people with a longer investment horizon and offer professional management. They are managed by mutual fund experts and invest in businesses that produce and mine gold. Investing in gold is made simpler with the increased liquidity and diversity offered by these products.
- GOLD ETFs
Asset management fees and long-term capital gains on exchange-traded funds (ETFs) are additional expenses associated with gold ETFs. ETFs provide a practical and affordable way to be exposed to changes in the price of gold. They trade similarly to stocks, but there are no fees or headaches associated with actual storage.
- DIGITAL GOLD
Gold is the key to opening up new avenues for riches, regardless of whether it is treasured as an adornment or an asset. Gen Z and millennials are encouraged by this Dhanteras to think about investing in digital gold because it has the benefit of being able to buy small amounts, on EMIs, and even through UPI payment platforms. Additionally, by making regular investments in digital gold, one can progressively amass a collection of exquisite jewellery, turning it into an emotional possession that functions as a useful financial tool as well as an investment. Additionally, you can use it as collateral for gold loans when you’re in need of money.
