• Announcements
  • Economy
  • Investment
  • IPOs
  • Weekly Markets
  • Products
  • Morninger
  • Eveninger
  • Industry
  • refer
  • 7824-003-757
  • Download App Get App
  • Contact
Flattrade Kosh Flattrade Kosh
Open Account
Flattrade Kosh Flattrade Kosh
Open Account
Flattrade Kosh Flattrade Kosh
Open Account
Flattrade Kosh
Open Account
Flattrade Kosh > Investment > Investing in Gold – An overview
Investment

Investing in Gold – An overview

Posted by blogadmin April 22, 2021
Share on
READ NEXT
Krsnaa Diagnostics IPO

There is an old proverb “Everything That Glitters is Not Gold”, In this blog let’s understand is Gold a perfect investment choice, and how much should we buy?

In Indian household gold has been closely attached to emotional bonding. Historically we have been valuing a person by how much Gold does the person possess. Today we have different ways to buy and invest in gold but the most important factor that we have to consider before you start accumulating gold is that we should understand the purpose of accumulating gold. If one is looking at gold as an investment then you should consider the following investment assets that are available in the market.

  1. Gold ETF- Gold ETFs are nothing but gold mutual funds that are traded in the stock exchanges. They are passive funds that represent the price of physical gold. The advantages of Gold ETFs are they are low in investment cost. They are in demat format.
  2. Gold Fund of Fund– These hybrid mutual funds invest in a set of Gold ETF managed by professional fund managers. They do not need a demat account to invest in Gold FOF. The biggest advantage one has here is they can be invested systematically through SIP.

Sovereign Gold Bonds – Sovereign Gold Bonds are government instruments representing grams of gold. They are an alternative to investing in physical gold. You will have to pay the issue price in cash and on maturity of these bonds you will get cash as redemption. The bonds are issued by RBI. On behalf of the government. SGBs are sold through banks, Stock Holding Corporation of India Limited (SHCIL), post offices, NSE and BSE through stockbrokers.

Physical Gold acquisition is the oldest form of the gold holding which is followed right from the days when Kings ruled India. We have been emotionally attached to this metal which is the symbol of prosperity and symbol in society. But are they good for investment? Actually saying it is a Big NO.

Find out why.

Physical gold is purchased as gold ornament and jewelry which attracts these hidden charges. Making charges which is normally 2% of the total value of the gold. There are wastage charges which are nothing but the scarp that wastage of gold during making them into a beautiful jewel. The wastage is normally 10% to 20% depending upon the kind of the jewel. Then we have the GST which is 8%.

Moreover the gold that you buy is not 24 karats they are 22 karat.

Assuming you have purchased gold at Rs.4000 per gram, and you wish to sell at Rs 4500. You might think it is Rs 500 as gain but in real terms you have paid 30% more on purchasing the gold which is Rs 1200 on Rs 4000 (per Gram). Your on net loss of Rs 700 per gram.

Tax on Gold Investment

1% wealth tax on investments over 30 Lakh on investments 20% capital tax is taxed on both gold jewelry and Gold ETF.

Conclusion

Physical gold is good as jewelry and ornaments but when it comes to investment it is always wise to invest in digital gold such as ETF and Bonds.

Tags: BSE Demat Account Flattrade Gold investing in gold Investment MCX NSE Share Market Stock Market Trading Account
Share on
Share on Facebook Share on Twitter Share on Pinterest Share on Email
blogadmin April 22, 2021
Previous Article How to invest in shares – For Beginners
Next Article Pre Market Analysis 23-4-2021

You Might Also Enjoy

Mutual Fund

Why invest in Mutual funds via Demat account?

May 19, 2025
Eveninger

Benchmark indices ended lower; All the sectoral indices closed red; Broader indices tanked more than 2 percent

February 28, 2025
Morninger

Gift Nifty indicates a gap-down start for the Indian Stock indices; The US markets ended lower; The Asian markets also traded lower following the Wall Street.

February 28, 2025
Eveninger

Benchmark indices ended on a muted note; All the sectoral indices closed in red except Bank and Meta indices; Broader market indices ended lower

February 27, 2025

Fortune Capital Services Private Ltd. SEBI Registration No. INZ000201438. Member Code for NSE: 14572 BSE:6524 MCX: 16765 and ICEX: 2010. CDSL DP ID: 12080300 SEBI Registration No.IN-DP-CDSL-729-2014. Registered Office: Kochar Technology Park, 6th Floor, SP-31-A, 1st Cross Road, Ambattur Industrial Estate, Ambattur, Chennai – 600 058. For any complaints pertaining to stock broking please write to [email protected] and for DP related to [email protected] Please ensure to read the Risk Disclosure Document carefully as prescribed by SEBI.

“Procedure to file a complaint on SEBI SCORES: Register on SCORES portal. Mandatory details for filing complaints on SCORES: Name, PAN, Address, Mobile Number, E-mail ID. Benefits: Effective Communication, Speedy redressal of the grievances”

“Prevent unauthorised transactions in your account, update your mobile numbers/email IDs with your Stockbroker/Depository Participant. Receive information of your transactions directly from Exchange/Depository on your mobile/ email at the end of the day. Issued in the interest of investors”. As a business we do not give stock tips and have not authorized anyone to trade on behalf of others. If you find anyone claiming to be part of FLATTRADE and offering such services, please email to [email protected]. “KYC is one time exercise while dealing in securities markets – once KYC is done through a SEBI registered intermediary (broker, DP, Mutual Fund etc.), you need not undergo the same process again when you approach another intermediary.” Dear Investor, if you are subscribing to an IPO, there is no need to issue a cheque. Please write the Bank account number and sign the IPO application form to authorize your bank to make payment in case of allotment. In case of non-allotment, the funds will remain in your bank account.


“Attention Investors 1. Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020. 2.Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge. 3. Pay 20% upfront margin of the transaction value to trade in cash market segment 4. Investors may please refer to the Exchange’s Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard. 5. Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month. Issued in the interest of Investors”

Disclaimer: ‘Investment in securities market are subject to market risks, read all the related documents carefully before investing’.

“Investment in Mutual Fund market are subject to market risk. There is no guaranteed or assured rate of return. Past Performance is not indication of future returns. Please read all related documents carefully before investing”.

“The securities quoted are exemplary and are not recommendatory”.


“Brokerage will not exceed the SEBI prescribed limit”.

Registered Office:

Fortune Capital Services Pvt Ltd
Kochar Technology Park, 6 th Floor,
1 st Cross Road, Ambattur Industrial Estate,
Ambattur, Chennai – 600058.

Company

  • Home
  • About
  • Kosh
  • IPO
  • Services
  • Pricing
  • List of Charges
  • Contact

Useful Links

  • Brokerage Calculator
  • Downloads
  • Margin Details
  • Fund Transfer
  • Knowledge Center
  • Refer & Earn
  • Investor Charter

Quick Contact

Support Number:
044-61329696 / 044-35019696

Support Email: [email protected]

Join our Telegram Channel for trading related activities and information.