With the increasing cases of Kovid-19, now investors are showing interest in gold once again. Investing in gold is considered a safe option in case of uncertainty. But, on buying gold in any form, apart from its price, many other types of charges have to be paid, which we are telling you about.
Last year, the price of gold in August month was more than Rs 56,000 per 10 grams. In March this year, this price had come down to Rs 45,000 per 10 grams. But amid rising cases of corona virus epidemic, gold prices will once again see a rise. If you also want to invest in gold, then you have many options. You can invest in Sovereign Gold Bond, Gold Exchange Traded Funds, Digital Gold. Together you have the option to invest in physical gold.
But before making such an investment, it is also necessary to see how much you will have to spend separately. If you want to buy physical gold from the market, then you have to pay 3 percent GST charge on it. Sona Digital Gold is available through PhonePe, Paytm or Stock Holding Corporation of India. Apart from this, you can also buy gold through Safe Gold.
But, keep in mind that if you are buying gold through PhonePe or Paytm, then you can keep it only for a maximum of 5 years. After that it has to be converted into coins or bars.
How expensive is it to invest in ETFs?
On the Safe Gold platform, you will get a chance to hold gold for 2 years absolutely free. After this, for every 2 grams of gold, you will have to pay a charge of 0.05 per cent. You have to pay this charge every month. Apart from digital and physical, there is now an option to invest through a Gold ETF. If you can invest in Gold ETAF according to your ability.
Gold ETFs incur an additional 0.003 per cent of the transaction fee on the total turnover value. Apart from this, a transaction fee of 18 percent is also levied on the customers. SEBI also charges stamp duty of Rs 10 for every one crore rupees transaction on the Gold ETF. Anyone can get input tax credit in ETFs.
Investing in Gold Bond is beneficial
Gold can also be invested through Gold Bond. Gold bonds can be purchased from any bank, stock holding of India or post office. Gold Bond’s maturity is 8 years old. Gold Bond is launched by the Reserve Bank of India. Last month itself, the RBI had released the 12th Sovereign Gold Bond installment on March 1 at a price of Rs 4,662 per gram. This will give you a definite return at the rate of 12.5 per cent every year.
How beneficial to buy gold coins or jewelry
On the purchase of gold in physical form, GST is to be paid at the rate of 3 percent. Investing in physical gold also has its disadvantages. For example, there is a fear of theft of physical gold. Also, if you sell the gold jewel after some time, then the amount received back on its purity is reduced directly by 10 per cent.
Experts associated with such markets believe that gold is the best medium for investment. For those investing in gold, ETF and Gold Bond can prove to be the best option.
