1. With the development of financial market and digitalisation of every offering, there are various options available today in India for gold investors. Let’s take a look at the gold investment options available for investors in India.

2. Physical gold: Apart from gold jewelleries and ornaments, gold coins and bullions can be bought in physical form as an investment. These are the purest physical form of gold which can be sold back later or can be used for making jewelleries. Gold coins are available in different sizes ranging from 1 gram to 50 grams. However, as gold coins are in their physical form, securing them and storing them in a safe place is a matter of concern.

3. E-Gold: This is an electronic form of investing in gold. E-gold are same as that of the physical gold, but, are held in an electronic form. Just like the physical gold is bought from banks and gold shops, e-gold can be purchased from the exchange on a digital platform. E-gold investments can be started with smaller denominations like 1 gram or 2 grams. This gold is convertible, which can be converted to its physical form at any point in time. In case of e-gold, there is fear of loss and storage issue. Holding cost can also be saved by buying gold in an electronic form.

4. Gold ETFs (Exchange Traded Funds): Gold exchange traded funds are the financial instruments that have gold as an underlying asset and is listed on the stock exchange for trading. Units bought under gold ETF are backed by physical gold, which are either in paper or dematerialised form. Basically, it’s a hybrid product that offers you benefit of trading (same as that of individual stock) and the gold investments (underlying asset). As you trade on exchange, transactions are regulated by Securities and Exchange Board of India. That means, it offers transparency and safety to the investor. Gold ETF investments also offer flexibility and liquidity to the investor without any trouble of keeping the physical gold.

5. Gold ETF is one of the simple and flexible options to diversify to an investment portfolio. However, it’s important to have demat and trading account to purchase gold ETFs.

6. Sovereign Gold Bonds: These are the government securities denominated in multiples of grams of gold. Sovereign gold bonds are the safest form of gold investments as these bonds are issued by Reserve Bank of India on behalf of the Indian Government. These bonds are traded on exchange. Hence, to invest in Sovereign gold bonds, the investor needs to pay the issue price in cash to an authorised broker from SEBI (Securities and Exchange Board of India). Interest (assured 2.5% per annum on issue price) assured on the bond will be credited to the investor’s bank account on a half-yearly basis. Investment can be started with even 1 gram of gold. Returns will be based on the gold price. With the sovereign guarantee on the redemption amount and the interest, sovereign gold bonds are good substitutes for physical gold. Gold bond comes with an 8-year tenure. However, investor can redeem after 5 years. This bond can also be used as a collateral for loan.

7. Gold Futures: Gold futures are the standardized financial contracts, wherein an investor agrees to take delivery of specific quantity of gold from the seller at an agreed-upon price on a future delivery date. Gold futures give investors a benefit to trade gold without having to pay the full amount upfront. Compared to other gold investment options, gold futures are considered relatively risk as the gold future market can be volatile. However, risk taken can reward you in the same proportion.

8. Gold Fund of Funds: Gold FoFs invest in gold exchange traded funds. The best part is there is no need of demat and trading account for investing gold fund of funds.

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I'm Aneet Trifid, I am sharing an article about an overview of What are the different options to invest in gold in India?. we provide Stock Trading Tips