Gold fell from its all-time high of Rs 79,681 per 10 grams to Rs 73,739 per 10 grams. This means its price has declined by Rs 5,942. Ajay Kedia, Director, Kedia Advisory, says gold was supposed to fall after a big rally, it has already happened. After America, the United Kingdom reduced its interest rates. This will increase purchases of gold ETFs. In such a situation, by June 30 next year, gold could reach Rs 85,000 per kg.
According to Mahendra Lunia, Chairman of Vighnaharta Gold, the price of gold could reach Rs 1.68 lakh per 10 grams by 2030. If you are also planning to invest in gold, invest in exchange traded funds on gold, i.e. gold ETFs, can be a good option. It has given returns of up to 19% over the past year. In such a situation, here we are talking to you about Gold ETF
ETFs are based on the rise and fall of gold prices Exchange traded funds are based on the rise and fall of gold prices. One gold ETF unit is equivalent to 1 gram of gold. This too is completely pure. Gold ETFs can be bought and sold on BSE and NSE stocks. However, you don’t get gold with this. Every time you want to exit, you will receive money equal to the price of gold at that time.
5 benefits of investing in a gold ETF
You can buy gold even in small quantities: via the ETF, gold is purchased in units, one unit corresponding to one gram. This makes it easier to purchase gold in small quantities or via the SIP (Systematic Investment Plan). While physical gold is generally sold at the price of tola (10 grams). Often it is not possible to purchase gold in small quantities when buying from a jeweler. You get pure gold: the price of the Gold ETF is transparent and uniform. It follows the London Bullion Market Association, the global authority on precious metals. Different sellers/jewelers may offer physical gold at different prices. Gold purchased through gold ETFs is guaranteed to have 99.5% purity, which is the highest level of purity. The price of the gold you buy will be based on its purity. No jewelry making costs: A brokerage of 1% or less is charged for purchasing a gold ETF, and an annual fee of 1% must also be paid for portfolio management. This is nothing compared to the 8-30% deposit fees that jewelers and banks have to pay, even if you buy coins or bars. Gold remains safe: Electronic gold is held in a demat account, with only demat fees. get paid. Plus, there is no fear of theft. While physical gold, apart from the risk of theft, must also be spent for its security. Ease of trading: Gold ETFs can be bought and sold instantly without any hassle. The Gold ETF can also be used as collateral to take out a loan.
How can you invest in this? To buy gold ETFs, you need to open a demat account through your broker. In this, you can buy shares of Gold ETF available on NSE and the equivalent amount will be deducted from the bank account linked to your Demat account. Gold ETFs are deposited into your account two days after the order is placed in your demat account. The Gold ETF is sold only through a trading account.
Limited investment in gold is beneficial According to experts, even if you love investing in gold, you should still make limited investments in it. Only 10-15% of the total portfolio should be invested in gold. Investing in gold can keep your portfolio stable during a crisis, but in the long run, it can reduce your portfolio returns.