Gold and silver have delivered 22% and 20% returns since Dhanteras last year. Price of gold rose by Rs 220 to Rs 39,240 per 10 gram in the national capital on Dhanteras, according to HDFC Securities. Gold price stood at Rs 32,000 on Dhanteras (November 5) last year. Gold price had closed at Rs 39,020 per 10 gram yesterday. In Mumbai, gold price stood at Rs 38,755 per 10 gram today compared to the previous close of Rs 38,450.
Silver price has gained 20.58% today when compared to the price of metal on Dhanteras 2018. It rose by Rs 670 to Rs 47,680 per kg today from Rs 47,010 per kg in previous trade in Delhi. Silver price on Dhanteras last year stood at Rs 39,540 per kg.
More and more people have been picking gold as an investment option, as it has emerged as proven 'hedge' against inflation. It also helps in securing loans in tough times. Gold can also be included into one's portfolio since the yellow metal has been found to be performing well when returns from equity markets have diminished. With gold emerging as an evergreen option for investing, here's a look at various routes to buy the yellow metal.
One can buy gold from jewellery shops but there are concerns in this case about safety, high costs and outdated designs. This involves making charges which are typically in range of 6% to 14% of the cost of gold. But when you sell that jewellery, these charges are irrecoverable.
Gold coins, bars and jewellery can also be bought online. The product is offered on the mobile wallet platform of Paytm. You can also invest in Me-Gold, a digital gold online investment by Motilal Oswal.
Sovereign Gold Bonds (SGB)
You can also buy Sovereign Gold Bonds for owning paper gold. They are issued by the government. The government opens a window for the fresh sale of Sovereign Gold Bonds to investors in irregular intervals. The window remains open for about a week. For those who want to buy these bonds anytime in between, the only way is to buy earlier issues at market value.
One can also buy gold coins from jewellers, banks, non-banking finance companies, and now even e-commerce websites.
Gold savings schemes
Gold or jewellery savings schemes are also among routes to invest in gold. One can deposit a fixed amount every month for the chosen tenure with a jeweller. At the end of the tenure, you can buy gold equivalent to the total money deposited, including a bonus amount. The conversion is done at the gold price prevailing on maturity.
Dhanteras is considered an auspicious day for buying gold, silver and other valuables. Dhantrayodashi also known as Dhanteras is the first day of five-day long Diwali festivities.
By Aseem Thapliyal