The latest series of sovereign gold bonds (SGBs), issued between December 18 and 22, 2023, and the lucrative returns that investment in gold has given in recent years, have sparked strong interest and sentiment among investors toward gold-based investments.
When it comes to investment in gold, SGB is one of the safe and secure investment options. But, there are other options too to invest in gold. below are three gold investment options other than Sovereign Gold Bonds (SGB)
What is SGB
For those who don't know, SGBs are government bonds measured in grams of gold. These bonds act as an alternative to owning physical gold, not just the current market value of gold after maturity, but can be traded on the stock market.
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Gold investment options other than SGB
Gold Bar
For traditional investors, gold remains one of the most promising investment options. This is especially true because buying physical gold does not involve the hassle of a Demat account or detailed paperwork, making it accessible to those unfamiliar with modern investment methods.
Gold exchange-traded funds
Gold exchange-traded funds (Gold ETFs) are an admirable alternative to physical gold. Like stocks, it makes it easy to buy, sell and manage investments, negating the need for physical storage or concerns about the purity of gold. ETF investments are highly liquid, allowing for quick transactions like buying or selling shares in stock markets. In contrast to physical gold, ETFs generally have lower transaction costs and eliminate the need for additional costs such as insurance or safe custody.
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Gold Funds
Gold mutual funds offer an attractive option for investors seeking investment with exposure to gold. It is an affordable option for investors unable to spend a collective amount once on gold. As compared to ETFs, gold funds do not require a Demat account to make them accessible to a wider range of investors.
Unlike gold or individual ETF units, gold mutual funds allow you to start investments as low as ₹500 through SIPs, convenient for budget-conscious investors. Generally, these funds invest in a diversified portfolio of gold ETFs, which provide inherent diversification and reduce some of the risk associated with holding gold.