How To Invest in Gold – A Comprehensive Guide

Wondering how to invest in gold? Well, you’re not alone! Investment in gold is highly relevant in today’s time of economic instability. Since gold has been the most valuable asset on earth for centuries, it is no wonder that people are constantly looking for new ways to invest in this precious metal. For Indians, gold is primarily a status symbol used variedly for making jewellery.

Moreover, everyone knows that it is a wise decision to invest in gold. Still, purchasing it comes with various doubts, like how to get the best deals on gold; what are the perks of investing, and so on. Therefore, in this post, we will provide all the necessary information to help you understand investment in gold. So, if you are unsure and confused about how to begin, keep reading to get your answers.

Importance of Investing in Gold

It is crucial to know the importance of investing in gold before getting to the ‘why’ factor of it. A critical factor that makes gold a worthwhile investment is gold and the stock market indexes. If you look at the stock market index throughout its history, you will find that when stock prices fall, gold prices increase and vice versa.

When stock market prices fall, the inclination towards gold directly shows that the value of gold can never lose its lustre. Therefore, investing in gold can be one of the best decisions that would help you increase your chances of financial security and stability. So let us now dig into the different ideas of investing in gold. 

How to Invest in Digital Gold and Why?

Digital Gold

Traditionally, the only way of investing in gold was purchasing jewellery, and most people still think it is the only way to invest in gold. However, buying physical gold is not the only option available for you. You can quickly put your money in the yellow metal via multiple alternatives, depending upon the size and duration of your investments. 

Investing in digital gold will save one from the hassles of owning physical gold, which involves purity concerns, finding adequate storage, coupled with hefty making charges. Therefore, the best way to invest in gold online is investing in digital gold. Here you can buy and sell gold fractions anytime. Besides this, you will have the option where you can invest in gold for as little as ₹10. Every bit of digital gold you purchase is backed up by physical 24k gold and is linked to real-time gold prices. 

Additionally, there are various perks of investing in digital gold. A few of those are summarised below:

  • You can invest some money and still possess gold. Earlier investors needed to have a reasonable amount of funds before investing, but now you can invest at ₹10. 
  • It ensures safety and security; therefore, all the companies offering digital gold safely store it in vaults.
  • Another intriguing aspect of investing in digital gold is that you can sell your digital gold anytime and receive funds within two working days in your account.
  • There are zero making charges here. In Addition to this, there are no making charges on digital gold like they are on jewellery or physical gold. 
  • You can view your gold holdings online, which means if you are investing small amounts regularly, soon, you will have a sizable quantity of gold in your account. 
  • One of the many perks of digital gold is that you can convert it into physical gold anytime you want.

How to Invest in Gold Coins or Bars Gold Coins or Bars

While investing, your primary goal must be to gain more with less investment. Therefore, purchasing gold coins or bars will be more beneficial as you would save the making charges. Usually, when one buys gold, they opt for jewellery, where a very sound part of your investments goes for the making charge. Therefore, you should opt for purchasing the gold coins and bar. You can easily buy gold coins and bars from jewellers, banks, E-commerce websites, and many non-banking finance companies.

How to Invest in Sovereign Gold Bonds

Gold Sovereign bonds are usually issued by the Reserve Bank of India (RBI) and are the safest way to invest in digital gold. The RBI has issued them on behalf of the Indian Government, further verifying its prominence. Furthermore, these bonds assure an interest of 2.5% per annum. These bonds come with five years of lock-in period and an overall tenure of eight. With the intensified safety, these bonds would be of due help to you.

Gold Savings Schemes

The jewellers across the nation greatly help the people invest in gold by offering various schemes. The basic crux of this scheme is that, typically, the jeweller would allow you to deposit an amount every month that is pre-determined for a specific period. By the end of the tenure, you will be able to buy gold from the same jeweller. And that would be at a value equal to the amount you would have deposited and a bonus. Moreover, you can purchase the gold at the prevalent gold price on maturity. 

Invest in Gold Mutual Funds

This is yet another answer to the ‘how to invest in gold’ query. The fundamental investment here is that the funds are invested directly or indirectly in the gold reserves. Further, the funds are usually invested in the stocks of mining companies, physical gold stocks, or gold producing or distribution syndicates. Besides this, the performance of these funds is directly linked to the performance of gold prices in the country. 

Gold Exchange Traded Funds

Gold Exchange Traded Funds are ETFs that usually invest in gold and help you trade the units over the stock exchange. ETFs have various pros, which make investing in gold beneficial. 


We hope the query about how to invest in gold is concluded by now. There are various new and safe ways of investing in gold. So, try to choose a way where your gains surpass your investment. Undoubtedly, purchasing physical Gold is one of the traditional and best options.

Moreover, other options like digital gold and can also be considered since the value of Gold only increases with time. Therefore, the perks of investing in gold are in abundance. But there are chances where people fool you with impure gold and related frauds. So, you need to be precise while choosing, and being more than careful during investing plays the most crucial role.

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