Celebrate Wealth! Why Diwali is the perfect time for Gold Investments

Come Diwali, come gold, silver and everything dazzling! It's that time of year again, when every home prepares to purchase gold and silver, which is considered the most auspicious practice. While gold has a distinct emotional and cultural importance, investment methods have evolved over the years reflecting the dynamic nature of the global economy. Buyers are no longer only interested in investing in physical gold, there is now an increasing trend of investing in Digital Gold, ETFs, and SGBs (sovereign gold bond) particularly around Dhanteras and Diwali.

This blog will take you through the 3 best investment ideas to dazzle up your portfolio this Dhanteras

1. Gold Jewellery or coins - Gold, whether loved as a possession or adored as an ornament holds the key to opening up new avenues to prosperity. A tangible asset, which is highly liquid and retains its value during inflationary periods, gold is a compelling investment choice among all major asset classes. However, there are several drawbacks to investing in physical gold. Physical gold needs to be stored safely in a locker, either in your own home, or in a bank which incurs an additional cost. Second, buying and selling gold in physical form is often associated with high transaction costs, such as making fees and taxes. Third, it is difficult to instantly convert actual gold into cash quickly to meet immediate financial needs. Over the last five years, the average return on gold has been approximately 13%.

In conclusion, keeping in mind the physical aspect of gold and its ability to withstand market risks and volatility, it is an ideal choice of investment to balance ones’ portfolio.?

2. Gold Funds or Gold ETF’s - Besides jewellery and bullion gold investment now people have the opportunity to invest in paper gold with options like gold fund and gold ETF. Gold funds or Gold ETFs are mutual funds that invest in gold providing a more diversified approach to gold investing. Carrying the advantages of liquidity and diversification these funds are suitable for both seasoned and new investors. However, when deciding between gold funds and Gold ETFs as an investment option one must understand the fundamental differences in terms of liquidity, diversification and costs. You need a Demat and trading account to invest in gold ETFs whereas you can always invest in gold mutual funds either online or through an agent.?

Connect with our team at InvestOnline.in to know more about investing in Gold ETFs and Gold funds.

3. Sovereign Gold Bond - For individuals wishing to invest in gold without the hassle of physical storage, SGBs (Sovereign Gold Bonds) issued by the government are an excellent substitute for physical gold. They pay periodic interest, offer tax benefits and can be redeemed for cash at maturity, usually 8 years. SGBs can be traded on stock exchange after a certain period. Combining the advantages of gold investment with the safety of a government backed product, SGBs are one of the most reliable and popular investment options. Over the past eight years, SGBs have yielded an average annual return of approximately 13.7%. Explore more about sovereign gold bond at https://invonl.in/250sgb?

Diwali is an excellent time to review your financial goals and make smart investing decisions. Only you can choose the finest investment possibilities for you. While it is not possible to compare your own risks to those of others, it is advisable to assess your financial goals, risk tolerance and earning potential to create the right investment portfolio.?

This Dhanteras add glitter to your portfolio with the best investment plan, visit www.investonline.in to get in touch or email us at [email protected]