Skip to main content

Buy-Invest in Gold

Gold is the most adorable commodity for the Indians.

There is undivided relation between the Indians and Gold.

Let's see how many ways you buy or invest in Gold.

Gold ETF's/Mutual Funds:

Post Covid, investing in Gold has become more appropriate. Due to every one have access to Internet, and exposed to the stock markets, more people invested in Gold ETF's or Mutual Funds.

Tax implications:
If the Gold invested in ETF's or Mutual Funds are subject to Tax.

For the long term gains, it attracts 20% on your salary head.

Security Gold Bonds:

The attractive thing about Gold Bonds, is you can earn interest of about 2.5% on the invested value twice in an year.

After maturity, you can withdraw the invested amount.

Coins/Bars from the bank institutions:

There is a huge sale for every Akshaya Tritiya, and people tend to buy more on this day than any other.

This gold can be readily useful for the ornaments.

Gold Schemes:

There were so many schemes introduced by the merchants on buying gold.

You can buy per gram for every month, and can used for making ornaments after the sovereign or two has been accumulated.

Merchants offered with zero making charges for these schemes.

Presently this is more attractive in India.

Physical Gold:

Buying physical Gold for making ornaments has become cumbersome due to the high prices.

Three years back(2017), the 8g has costed 28,000, but it has reached 55,000 now.

For any small ornaments, it takes huge cost now and people are unable to afford not even for 2 sovereigns, which cost around 1 lakh.

So, people are investing more in the schemes.

Although, there are some exceptions from the recent gold accumulation, the truth is every Indian has more than eligible amount.

Here is the max amount of Gold each individual should have.

Married woman - 500g of Gold
Unmarried woman - 250g of Gold
Man - 100g of Gold

Tax on Gold:

I think most people have searched for the Tax implications on Gold, but the fact is that people will never sold a gold unless necessary.

So, don't worry about the taxes on Gold.

But here the twist comes, since we are investing in Mutual Fund, to make into money, we need to sell and imply the Tax.

This is the trick for the Gold.

Invest in Gold ETF's or Gold Bonds for an Emergency not as an Investment, since it can be easily liquidated.

Buy the Physical Gold/Opt for Schemes/coins for Investment. It can be used as a loan if need money and also as a ornament.


  1. You have shared a lot of information in this article about precious metal account. I would like to express my gratitude to everyone who contributed to this useful article. Keep posting.


Post a Comment