Is physical gold truly a wise investment in India? Explore its role as an asset, symbol of wealth, and financial security.
Physical Vs Sovereign Gold
"Physical gold includes bars, coins, and jewelry, while gold bonds are government securities issued by the RBI, denominated in gold, with each unit representing 1 gram of gold."
Buying SGBs
Buying Sovereign Gold Bonds (SGBs) is accessible through nationalized banks, private and foreign banks, authorized stock exchanges, and the Stock Holding Corporation of India Ltd.
SGBs Investment Required
Sovereign Gold Bonds (SGBs) require a minimum investment of one gram and a maximum of 4 kgs for individuals, with a 5-year lock-in period. The issue rate is fixed by the government.
Buying Physical Gold
Buy directly from jewelers, eliminating broker risk, with no purchase limit.
Physical Gold Drawbacks
Costly to carry and store, risk of theft, high making charges, and potential wealth tax for purchases over 30 lakh.
Benefits Of SGBs
Low risk, tradable on exchanges, indexation benefit, and offer annual interest of 2.5% twice a year for additional income.
Choose SGBs
Easy purchase, tax benefits, interest, and greater safety make them a superior investment choice over physical gold.