By Admin 
- Indian investors still consider gold safe, especially in the form of jewellery.
- Gold has given good returns of 9-12% per annum in the last 10-15 years.
- Gold ETFs are also gaining popularity, which are easily traded in the stock market.
- Gold ETFs are better for long-term investments, whereas physical gold has an emotional connect.
Gold vs Gold ETF: Most investors in India still consider gold as a safe investment. Especially investors place their bets on physical gold like jewellery, coins or bars. The reason behind this is not just investment but tradition and years of trust also make physical gold special.
Talking about return figures, gold has given good returns over time. According to data from India Bullion and Jewelers Association, gold has given annual returns of about 9 to 10 percent in the last 15 years and about 12 percent annual returns in the last 10 years. Because of which it remains people’s choice. Along with physical gold, gold ETFs are also becoming popular among investors. Let us know about both these options.
physical gold
While buying physical gold, investors have to keep in mind other things including making charges. The making charge on many jewelery reaches up to 25 percent. Besides, there is concern about keeping it safe and its purity.
Even at the time of selling, the full price is not received. Due to which investors have to suffer losses.
Gold ETF
It is very easy for investors to invest in gold ETFs. Gold Exchange Traded Fund (ETF), which was started in the year 2007, has made the way of investing in gold much easier. In this, these funds are traded in the stock market. Due to which it becomes easy to buy and sell them.
Talking about returns, in the long run, i.e. over 10 to 15 years, gold ETFs have performed almost the same as physical gold. However, returns may be slightly lower due to fund management costs. Which is usually between 0.3 to 1 percent.
Which option is better for investors?
If an investor wants to invest for a long time then gold ETF can be a better option. Investment in this is easy and transparent. Compared to physical gold, the returns are also almost equal. At the same time, if there is an emotional connection with gold or if you plan to gift it to someone, then you can invest in physical gold.
Also read:
Big salary yet loan rejected? Know the 5 hidden reasons that are spoiling your game