How To Buy Gold in India This Diwali?

How to Buy Gold in India this Diwali?

Diwali is coming and Indians are busy in buying Gold. The Gold price fluctuates record high between Rs.19,500-20,000 per 10 grams. And according to the economic news, the gold price will shoot up more after quantitative easings by the US Government.

Many people want to invest in Gold but don’t know the various options available in India to buy a gold. This article is all about those options. So Here we go.

01) Banks -

The commonest way to buy a gold is from your local near bank branch. ICICI & HDFC Banks provide this service. You can buy a gold in the form of bars and coins of various grams.

The main advantage of buying a gold by this way is that, it comes with tampered proof pack along with 99.99% (24 Carat) purity certificate. Thus, you can buy a gold from banks for purely investment purpose.

However, the only limitation is that, banks won’t buy back this gold from you. You will have to sell it later on in the local market. But well, gold is the liquid asset class so you won’t have any trouble in finding a buyer in India.

02) Tanishq -

Tanishq is the jewellery show rooms chain by TATA Group. You can also visit your nearest Tanishq branch and buy a gold from that branch. Tanishq is the reputed jeweller and that’s why you can buy a gold from it.

03) Jewellers -

Since centuries this was the most preferred way to buy a gold from the jewellers. However, there are many purity issues in buying a gold from the jewellers. However, not the all the jewellers are same. You can buy a gold from the reputed jewellers of your city. The main advantage of buying gold from your local jewellers is that, they will buy back this gold from you in the future at the market prices.

04) Gold ETF -

The only problem with physical gold is – purity issue and security issue. And that’s why the new form of gold has came in India and that is known as Gold ETFs / Demat Gold / Paper Gold / Gold Exchange Traded Funds.

Basically Gold ETFs buy a physical gold on behalf of you and keep it in custody. The Gold ETF is listed on the stock exchanges and it has its units and NAV price. You can buy units of these funds. 1 unit of this fund means 1 gram (or 1/2  gram in some funds) of physical gold.

So the 1 unit of gold ETF will closely track the price of 1 gram of real gold. There is not any issue of purity here. Right now Benchmark, Reliance, Kotak and UTI banks have floated their Gold ETF Schemes.

Thus, the above are the various ways to buy a gold in India.