Want To Invest In Gold This Diwali? Choose The Right Option Between SGBs, Gold Coins, Or Jewellery

While each of these options is a vital avenue to invest in gold, it is crucial to understand their advantages and disadvantages so that you can make a choice better suited to your financial goals

Diwali is the festival of lights, but it is also marked by shopping, food, and music. The festival of Dhanteras marks the beginning of the celebrations and is considered an auspicious day for Hindus to make investments in gold. 

In addition to investment, Indians also look at Diwali as an ideal time to buy gold for religious and gifting purposes. However, there are several ways to invest in the precious metal. You can opt to pour your funds in a sovereign gold fund, gold jewellery, or gold coins and biscuits. While each of these options is a vital avenue to invest in gold, it is crucial to understand their advantages and disadvantages so that you can make a choice better suited to your financial goals.

Gold Jewellery

If you are looking to buy gold for personal use or gifting purposes, you should consider looking at buying gold jewellery. Make sure you go for hallmark-certified gold jewellery to get the full worth of your money. During diwali time, many jewellers offer discounts and offers on their products, so do your research to get the best deal on your purchase.

Gold Coins and Biscuits

If you are considering to buy gold for investment purposes but prefer to hold the metal in its physical form, you can decide to buy gold coins or biscuits. Gold coins start from as low as 1 gram. For higher quantities, you can also decide to invest in gold biscuits. This form of gold allows you to save on making charges associated with gold jewellery and unlike sovereign gold bonds, you can physically hold it with yourself. This allows an individual to enhance their financial security and build an emergency gold reserve that they can liquify anytime as per their need.

SGBs

Sovereign gold bonds are an excellent way to invest in gold for a cautious individual. You get to enjoy the benefits of your investment in the long term without having to worry about the security and maintenance of the gold you have bought. SGBs provide a 2.5 per cent annual return and are also free from capital gains tax if you hold them until maturity.

SGBs work like a SIP for gold and allow individuals to accumulate their wealth over the long term without the hassle of storing gold physically. However, gold prices are impacted by inflation and geopolitical events so like any other SIP, it is open to risks of the market.

Therefore, it is advised to conduct your own research and pick the gold investment option that aligns best with your financial goals and spending capabilities.

[Disclaimer: Investing in gold involves financial risks. Please invest responsibly and only after thorough research and careful consideration. Reader discretion is advised.]