Coronavirus: Buying gold this Akshaya Tritiya might not be the usual affair as the country undergoes a nationwide lockdown. If you are planning to buy gold this Akshaya Tritiya to be observed on Sunday, then you won't be able to head to a store and purchase the yellow metal. You can, however, buy gold online.
Due to the economic instability, high inflation and market volatility, gold continues to remain an attractive asset. Gold tends to do well during periods of financial volatility. Gold prices have shot up in the past few months. On Friday, gold futures were up 0.17 per cent or Rs 78 to Rs 46,505 per 10 gramme.
Here's how to buy gold during Akshaya Tritiya amid coronavirus lockdown:
Gold in hand
You can buy gold in the form of biscuits, jewellery or coin. Even though there is no limit to how much of physical gold you can buy, there is always a risk factor. However, returns on physical gold are lower than actual return on gold. Purity check when buying physical gold is essential.
Gold exchange traded funds (ETFs) can be purchased from stock exchanges. You can buy it almost at the actual rate. To buy gold ETFs, you will need a trading demat account. You must keep in mind that there is a minimum limit of one gramme. Returns here too are lower than the actual return on gold. LTCG is applicable here. It can be traded on the exchange, plus there is no lock-in period. Gold purity is high here.
Sovereign Gold Bonds
Sovereign Gold Bonds or SGB are government securities. SGB is issued by the RBI in multiples of one gram of gold. There is an investment limit of 1 gramme and maximum of 4kg for an individual. These bonds have lesser risk of theft. Additionally, they have high returns on the actual gold because of the interest payable. SGB interests are taxable. SGBs have high purity and can be traded on an exchange. Their maturity period is eight years. Storage cost is also low.