Invesment Ideas

Everything You Need to Know About Gold Investing

You can buy gold from anywhere where you want. You can also sell that gold whenever you want. Now if we talk about the cons of buying physical gold, if we talk about the disadvantages then the first one will be that of multiple losses. There may be a risk of theft here. Whereas if you buy gold, you also have to store it.

The third thing is cheating. Where you buy gold. You have got gold at the rate of twenty-four. This may also be of twenty-three carats where you may be cheated. So who does this also become? When you buy physical gold then who is fourth? Very favorable taxation. If we compare it with SGB, then in the fifth there is no regulator here. Bye, if we are talking about taxation then let’s discuss how gold is taxed. Whereas if you buy gold and sell it at a profit before three years, then you have to pay short-term capital gains tax on it. So short-term capital gain before three years, after three years. Long-term capital gain is short-term capital gain.

According to your tax rate. If you sold at a profit before three years, you will have to pay tax on that profit as per your tax slab. On the profit of this gold. And if you sell after three years at a profit, you will have to pay long-term capital gains tax on it which is twenty percent after the indexation benefit. Let’s move forward to the second option of buying. Gold is a gold investment that is done. Digital Gold where if you send phone money through Google Pay or Paytm. If you buy gold from such third-party apps, then we call it gold digital.

There are many benefits of investing in digital gold where you do not have to store it personally. The worry of theft of this gold goes away here. The second benefit is that you can do instant buy-selling. So there is a lot of liquidity here. The third pro is that. You can invest even ₹ 1, so you can buy gold with a minimum investment of ₹ 1. That’s the third pro. We can say the fourth pro, the fourth benefit of that. Here you also need to pay more attention to purity. Here you can also be sure about purity. Now there are some disadvantages and cons of investing in digital gold which we discuss below. Where you will be charged GST of three percent. When you buy gold, it becomes an extra charge. Gold buying will happen. Then the second came that. When you invest in digital gold, the spread here can be very large. Where jo is the actual price. There can be a huge difference in the price at which you buy gold. Because of GST, when you buy gold, all these companies charge you for installing digital gold, storage, insurance trustee, all these charges, so here also the spread can be very big. . So who becomes the big one to invest in digital gold?

Also told, if you compare it with SGB, you do not get any benefit from digital gold in taxation. Now let’s move forward to the third way of investing in gold which is gold ETFs which mutual fund houses sell you. Like digital gold, there are some similar benefits of investing in gold ETFs where you just need to worry about storage. You don’t need to worry about purity. You can buy gold with a minimum of ₹50. Major Benefits of Investing in Gold through ETFs. Over digital gold. Here you do not have to pay three percent GST. Also, it is regulated by SEBI now if we talk about which then here you will have to give the expense ratio. When you invest in gold through ETF, you will have to earn some profit to run the mutual fund.

Here, tracking errors may also occur occasionally where the actual price of gold is. Accordingly, if you invest in gold through ETF, its price may go up or down slightly compared to the actual price. Tracking errors can be a disadvantage that turns into a disadvantage of investing in gold through ETFs. And third is common. You will not get the taxation benefits of SGB even in Gold ETFs. So in SGB, you are getting different tax benefits, which we will talk about it now. So let’s move forward to the fourth of investing in Gold. This SGB Sovereign Gold Bond Now Let’s Discuss Benefit Pro Investing in Gold through Sovereign Gold Bond Shows the Major Benefit Tax Benefit. Here if you till maturity. If you hold SGB for eight years, you do not have to pay any tax on it, which is a huge benefit. The cherry on the cake is that the government gives you 2.5 per cent interest which gets added on.

So if you invest ₹ 1 lakh in gold through SGB, then you will get an annual interest of Rs 2.5 thousand. Yes, you will have to pay tax on this two-and-a-half percent interest as per your tax slab. All the other processes are already there. Where you don’t have to worry about theft because you are not doing a story. You don’t even have to worry about the physical purity of gold. Also one major pro in investing in gold through SGB is that the government generally issues it at a discount. If SGB is issued at a discount to the actual price of gold, you can also get a discount here. Now let’s move forward to disadvantage who?

Because if you sell your bond in the market then the liquidity in the market also is less. So this can happen. You may have to sell your bonds at a discount. And the second minor who becomes this? Date: Ticket size is more here. You could invest in digital gold or ETF for ₹ 1 or ₹ 100. However, you cannot invest in gold for ₹ 1 or ₹ 100. You have to buy a minimum of one gram of gold. If the proximity is around 4.50 5000, then the minimum ticket size can be said to be 5000. If it is around 5000, then you cannot invest a very small amount of thousand rupees or even ₹ 500. Who is this small person in ST, these four options are in front of you. When you want to invest in gold, then I have told you the pros and cons of these four options: physical gold, digital gold, gold ETF, and SGB.

Now if you ask me. Which option is best so I would say that it depends on individual to individual because personal finance is called personal finance it. From this personal point out, if you want to invest in gold for the long term then SGB is the best possible option. Here is a shocking truth. When you invest in SGB, you do not buy gold. If you invest in digital gold or gold ETF, then all these companies buy gold in actuality. Stores in your hands. But when you invest in sovereign gold bonds, the government is not buying gold. It will be fair to you with a trust selling a paper from the government side.

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