Gold has been valued in India for centuries as a source of financial security and as part of cultural traditions.
However, with gold prices rising sharply, buying jewelry or coins has become costly. Fortunately, there are several ways to invest in gold with small amounts, avoiding heavy expenses.
Why Invest in Gold?
Gold protects against economic uncertainty, inflation, and currency fluctuations. In India, gold jewelry is also widely worn at festivals and weddings.
But jewelry and coins involve making charges and storage costs, which many people consider unnecessary.
Gold ETFs
One of the easiest ways to invest in gold is through Gold Exchange-Traded Funds (ETFs).
Traded on stock markets
One unit = 1 gram of gold
Can be bought and sold like shares
No worries about purity or safekeeping
Requires a demat account
Sovereign Gold Bonds (SGBs)
SGBs are government-backed securities linked to gold.
Investment possible from 1 gram of gold
Offer 2.5% annual interest in addition to gold returns
No need for physical storage
Lock-in period: 5 years (but tradable on stock exchanges)
Digital Gold
Fintech platforms allow people to buy gold with as little as ₹10.
Can be converted into jewelry, coins, or bars
Can also be sold online
Important: check the reliability of the fintech company before investing
Gold Mutual Funds
Another option is gold-focused mutual funds, which invest in Gold ETFs.
SIP option available from ₹500 per month
No demat account required
Managed by fund houses
Expense ratio is slightly higher than direct ETFs.
