How to Invest in Gold Online? || ( A to Z Guide ) TF Team:

There are number of metals available in India and many kind of metals are traded in the Stock market.

But gold as an investment is favorable for all the participants of the stock market.

The value of gold is irreplaceable as it provides high liquidity and inflation.

For making an investment in gold, there are different ways like buying jewelry, coins, bars, gold exchange-traded funds, gold funds etc.

In the current scenario, the rates of gold has been more volatile and due to this most of the traders or investors are attracted towards investing in gold.

From this article, that is on “How to Invest in Gold Online?” will provide you the benefit and will be able to make you learn to know the form of investing in gold through Online platform.

If you are curious to know about making investment in the gold or the benefits of investing in gold then my friend you are at the right place where you get the correct information.

Firstly, I will make you understand on the various investment plans in Gold.

Starting with,

What are the Different Investment Plans for Gold?

Coming straight to the point that is “How to Invest in Gold Online?”

So, for that purpose there are already many kinds of modern options available for investing in gold that is mostly preferred by the individual.

There was a time when people used to make their investment by buying the physical gold in the form of jewelry, coins, or artifacts.

But now the scene has being changed and now the individuals that is the investors or traders have changed their way of investing in gold by starting the investment in different options like Gold ETF and Gold Funds.

For more understanding of Gold ETF and Gold Funds, you can refer to our article that is on, “What are Gold ETF and Gold Funds?

For investing in gold, there are few investment methodologies that is.

  • Physical Gold
  • Gold ETF
  • Gold Mutual Funds
  • Sovereign Gold Bonds

What are Sovereign Gold Bonds?

The Sovereign Gold Bonds are considered as the safest form of making the investment in buying the digital gold.

They are issued by the Reserve Bank of India (RBI) on behalf of the government of India with the assurance that the interest will be of 2.50% per annum.

The bonds are denominated in units of grams of gold with a basic measurement of unit of 1 gram.

The maximum to maximum investment can be made up to 4 kg.

 These kind of bonds has eight years of tenure with the option of exiting it from the fifth years onwards.

These bonds are hassle – free form of investing the gold where you get the ownership of the gold but without any physical possession.

What are the Documents do you need to Invest in Gold?

  • For More than Rs. Two lakhs of invest in physical gold requests for the PAN Card.
  • For making an investment through ETFs, you will be required to open an account with a brokerage firm followed by a Demat account with the same firm.
  • For investing in SGBs (Sovereign Gold Bonds), KYC required are the documents required to buy Physical gold (Aadhar Card, PAN Card, Voter ID or Passport).

Who are offering for Buying the Digital Gold?

For purchasing the advanced gold, you can get it through portable wallets, for example, Paytm, PhonePe and under the Gold Rush Plan of Stock Holding Corporation of India.

All these type of gold buying options are rendered either in association with MMTC-PAMP or SafeGold or both.

(MMTC-PAMP is a joint endeavor between government-claimed MMTC and Switzerland-based PAMP SA. SafeGold is a digital platform that has tied up with various mobile wallet apps allowing customers to buy, sell and receive vaulted gold from as low as Rs 1.)

What will be the assurance for the Purity of these Gold?

The MMTC-PAMP and SafeGold, offers gold of purity of 24KT.

However, in terms of fineness, the MMTC-PAMP offers gold of 99.9 percent purity whereas the SafeGold offers 99.5 percent purity.

Fineness is stated by the weight of precious metal such as gold in proportion to total weight (inclusive of alloy and impurities).

It is expressed in units of parts per 1000.

As per World Gold Council’s site, even ‘unadulterated’ gold can contain minute measures of pollutants that the maker can’t eliminate.

The gold purchased from these platforms is kept in a vault which is fully secured for all the eventualities.

What will be the Tenure to keep this Kind of Golds?

If the gold is bought from the MMTC-PAMP platform, then there are no charges on storage.

Then, one can keep gold for maximum for five years.

However, after five years, you get the eligibility to either convert it into gold coins or sell it.

To abstain from making your record inert, you are needed to do one exchange in no less than at regular intervals.

Similarly, if you bought the gold from SafeGold using PhonePe, then it is likely that you might have to pay storage charges.

These are charged as follows:

  • No charges for the first two years.
  • If the amount of gold is less than 2 grams at the end of two years from the date of your first purchase, then a fee of 0.05 per cent per month is charged.
  • The fee will be deducted at the end of every month from your gold balance.
  • The gold can be held for maximum of 7 years.

About Us

From this article, on “How to Invest in Gold Online?” had given the clear ideology that how you can make the investment in the digital gold platform using the different applications.

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Till then, Happy Learning!

Author

Prashant Raut is a successful professional stock market trader. He is an expert in understanding and analyzing technical charts. With his 8 years of experience and expertise, he delivers webinars on stock market concepts. He also bags the ‘Golden Book of World Record’ for having the highest number of people attending his webinar on share trading.