ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » Personal Finance News

Should you still buy physical gold or invest in paper gold this festive season

Last year during festive season, a trend was seen where Indians were not only looking at buying physical gold as an option. 

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Should you still buy physical gold or invest in paper gold this festive season
People busy buying jewellery on "Akshaya Tritiya" in New Delhi, on April 28, 2017. Photo: IANS

Festive and wedding season is right around the corner. Hence, as an Indian you will head towards buying gold jewelry.

It is considered auspicious to buy yellow metal. Apart from that, people generally buy it as a saving which can be used at any point of emergency. 

But, now the question is should you still follow the tradition of buying physical gold or move ahead?

Look at this point. There are always associated costs when it comes to gold jewelry. These include making charges, wastage, and add up to the cost which are not recoverable while liquidating the jewelry.

Calling investment in gold as a"BIG NO NO", Ajit Narasimhan, Category Head - Savings And Investments, Bankbazaar.com, said, "It may not be very easy to sell jewelry for cash. In addition, gold itself is an unproductive asset. Its value increases entirely on the belief that someone else will pay more for it eventually."

So, where to go next?

Last year during festive season, a trend was seen where Indians were not only looking at buying physical gold as an option. With the change in thinking and growing awareness, people were exploring new ways of buying gold like paper gold.

Sovereign Gold Bonds and gold Exchange Traded Funds (ETFs) are examples of paper gold. 

In fact, the government last year had launched Sovereign Gold Bonds which could still be considered as an investment option as it comes with number of advantages, if you are looking to stay invested for eight years or more.

These bonds are issued periodically, and their value increases exactly with gold. They also provide an extra interest of 2.5% per year, Narasimhan said.

Moreover, apart from SGBs, there are many Mutual Fund houses closely track the value of gold and have goldbacked mutual funds. 

But, unlike gold mutual funds, the gains from the gold bonds are tax-free. This makes it very similar to holding physical gold with a 2.5% a year bonus.

Hence, this festive season do consider other gold options rather than just investing in physical gold. 

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
goldPhysical goldpaper goldInvestmentsavingsSovereign Gold BondsSGBsGold exchange traded fundsETFsPersonal Financegold mutual funds
Written By: ZeeBiz WebTeam
Updated: Fri, Sep 15, 2017
04:50 pm
Mumbai, ZeeBiz WebDesk
RELATED NEWS
Govt plans to make hallmarking of gold bullion mandatory: BIS Director General Govt plans to make hallmarking of gold bullion mandatory: BIS Director General
Sale of gold jewellery and gold artefacts hallmarked without six-digit code to be banned from April 1 Sale of gold jewellery and gold artefacts hallmarked without six-digit code to be banned from April 1
Gold soars to record high of Rs 56,850 per 10 grams. Is it an opportunity missed? Gold soars to record high of Rs 56,850 per 10 grams. Is it an opportunity missed?
CBI recovers 17 kg gold, Rs 1.5 crore in cash from ex-Railway official CBI recovers 17 kg gold, Rs 1.5 crore in cash from ex-Railway official
India December gold imports plunge 79 per cent fall by over a third in 2022 India December gold imports plunge 79 per cent fall by over a third in 2022

LATEST NEWS

Aadhaar-PAN linking: Congress Lok Sabha leader Adhir Ranjan writes to PM to extend deadline by six months

BSEB Bihar Board 12th Result 2023: Results DECLARED - Check direct link biharboardonline.bihar.gov

US Stock Market News: Dow Jones jumps 383 pts, Nasdaq, S&P 500 follow suit as bank contagion fears ease

OnePlus 11 Review: OnePlus makes one with (almost) everything!

Dividend stock: SBI Card declares dividend of Rs 2.5 per share — check out record date, payment date

Hindustan Zinc Dividend: Board approves 1300% interim dividend — Check record date

Gudi Padwa 2023 date, muhurat, significance and all you need to know

Accenture to acquire Bengaluru-based AI firm Flutura

WPL 2023 Point Table: Check Women's Premier League teams standings, ranking, net run rate, upcoming matches, other details

Bajaj Finserv's Sanjiv Bajaj calls Indian banking strong, asks banks to keep focusing on risk management

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV