NSEL's e-gold enables investors to park their funds into gold in small denominations in demat form.Those looking to invest in gold today have multiple options to choose from.
One can invest in physical gold, in the form of jewellery, coins or biscuits, or set up a demat account to purchase gold electronically.Other than physical gold, a range of gold-based financial products are available today, such as gold ETFs (exchange traded funds), and gold schemes such as gold-denominated bonds.
In contrast to physical gold, financial products such as gold ETFs act like mutual funds, wherein the value of investment is linked with the market price of the underlying asset.
Besides, government-backed schemes such as theSovereign Gold Bond (SGB) Scheme, the Indian Gold Coin Scheme and the Gold Deposit Scheme (GDS) are among some of the other avenues available today to invest in non-physical gold.1.
E-goldThe National Spot Exchange (NSEL)'s "e-gold" enables investors to park their funds into gold in smalldenominations in demat form.
It is available on the pan-India electronic trading platform set-up by National Spot Exchange, which can be accessed through members of NSEL or their franchises.
Investors can buy, accumulate, hold and liquidate e-gold as well as convert the corpus into physical gold.2.
Gold Exchange Traded Funds (ETFs)Gold ETFs are similar to mutual funds wherein investors can buy their units online and keep them in a demat account.
Gold ETFs are traded on the cash market, and can be bought and sold at market prices.
Investment in gold ETFs attracts much lower expenses as compared to physical gold, according to the NSE's website - nseindia.com.3.
Sovereign Gold Bond (SGB) SchemeSGBs are government securities denominated in grams of gold.
They are substitutes for holding physical gold.
Investors have to pay the issue price in cash and the bonds are redeemed in cash on maturity.
The bonds are issued by the RBI on behalf of government.
The central bank notifies the terms and conditions for the scheme from time to time.
Here's the schedule of the issuance of gold bonds under the Sovereign Gold Bond (SGB) scheme:TrancheDate of SubscriptionDate of Issuance2019-20 Series IJune 03-07, 2019 (Completed)11-Jun-192019-20 Series IIJuly 0812, 2019 (Completed)16-Jul-192019-20 Series IIIAugust 05-09, 201914-Aug-192019-20 Series IVSeptember 09-13, 201917-Sep-19(Source: rbi.org.in) 4.
Gold Deposit Scheme (GDS)The deposits outstanding under the Gold Deposit Scheme (GDS) are allowed to run till maturity unless these are withdrawn by the depositors prematurely as per existing instructions.
All designated banks are eligible to implement the scheme.5.
Indian Gold Coin SchemeMMTC or Metals and Minerals Trading Corporation of India has been authorized by the central government to manufacture India Gold Coins (IGC) and supply these coins to the domestic market, according to the RBI.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
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