How To Invest In Gold(Part-1)

  Hello guys welcome to my new blog. This blog this all about how to invest in GOLD If you want to know the best instruments for investing y...

 Hello guys welcome to my new blog.

This blog this all about how to invest in GOLD

If you want to know the best instruments for investing you can easily check out my last blog by clicking it this link ---> Last Blog

This blog I will divide in two parts, this is the first part and the second part will publish very soon so stay tuned.

Gold
is one of the most precious metals on earth. People say this is a God's gift, apparently this is right because in the past we saw that it gives us a value regarding our money. In the past and present also in the future it will give us a mode of exchange for our money. For those investors who don't wanna take too much risk, probably this is best for then viewing past performance. The governments uses gold as a reserve that means it will always give us a value, so investing in it not a bad idea, but before investing in it you must consider some points. Here is the GOLD's chart

In INDIA  there is a tradition to buy gold in occasions, so in a study we know that Indian household have 25,000 tons of world's gold, that's a huge number. But most of them in the form of jewellery or the other forms. So which form is best for you to invest in, for that you have to read the full blog.

1) Gold Jewellery

If you buy golden jewellery for your own purpose that's great, but if you are buying this for investment then you are doing it quite wrong. You must look at it's pros and cons.

Pros:

You can wear it in occasions, parties or any where you want to wear.

You also can get a loan against this jewellery this is called gold loan which is quite lower than personal loans.

Cons:

When you are buying gold as a form of jewellery then there always comes a making charges for this(6% - 7%), with some tax( if you are in India then you have to pay 3% as GST), some jewellery companies also includes some more hidden charges on this.

When you are making jewellery from gold they cannot use pure gold to make these things therefore some more metals and elements are added to the gold so the value will also decreases for it's impurity. Also while making jewellery some gold gets cut out of it and it becomes total waste for you.

When you gonna get a loan against it you will realise that how much money you invested in making it, but latter it doesn't have the same worth. 

Also with physical gold and jewellery you need to protect them in a secure place, so it might be any banks locker or any other safe, and these safes also charges you some money to keep your gold safe.

2) Physical Gold or Gold bar

Yes gold bars or gold coins can be a good alternate for investing in gold rather than investing in jewellery. It also has it's own pros and cons.

Pros:

Gold bars or coins usually does not incur any higher making charges.

You can store it in it's purest form with no more extra elements in this.

You also get a loan against it, which is great for it's pure form.

Cons:

Also in physical gold you have to pay 3% GST if you are from India.

Some times it also take some charges for melting it and shaping it.

Any physical form of gold you have to keep it safe from any theft. So because of this it also cost us some storage fees if we want to put it in any type of safe.

3) Digital Gold

Yes this is the new gold standard for millions of new investors in India. But before investing in it you must know its nature how it is stored and all that. As you know it's a digital form of gold with 99.9% purity. In India there are some companies(Augmont Gold, Safe Gold, MMTC LMT) who take care of this gold and with them you can also buy your own digital gold. All you need to do is open an account where this gold exchanges are available and complete your full KYC. For KYC related issue I had already written a blog so you can check it out.  After all it also have it's own pros and cons so stay tuned.

Pros:

You can easily buy Digital Gold from any online application.

The digital gold are never stored in the application wallet like crypto currencies, it always get stored by the company from which you bought and they keep it in a safe vault. The company will also give you the insurance on it for any damage. If any how these gold companies get liquidated still you will get your gold by the vault trustee.

It has no making charges.

You don't have to bother for storing it in any safe.

You can also get your digital gold in your home by ordering it for delivery.

You can buy it as low as 1Rs and it takes only 5 minutes to buy it.

You can buy/sell it at live price. It changes 24hs and you can buy it anytime you want.

Cons:

As you are buying digital gold online so you have to pay via online payment method, so sometimes poor network connection or bank server issues your transaction may struck. But there is no problem because it will take sometime, they will solve this problem.

As they are serving us the facilities , so they take some charges for it like  payment gateway, storage, insurance, trustee and custodian charges.

Govt also taxed on it 3% GST, it is applicable while buying it.

In the digital gold exchange platform the live buying price and selling price varies in the same time, because the gold companies take some charges for itself including the previous charges.

You can compare these things for a better decision and also in the next blog I will write some other ways to invest in gold. Primarily I focused on Indian markets, but if you are from other country no problem, this website will also help you to make your better decision so you must follow this blogging website. So comment down below for any question I will try to answer.

I hope this blog will be helpful for you. And don't forget to share this with your love ones. Thank you😀.

Editor: Rupak Chowdhury, Sk Elaf Ahmed.