Akshaya Tritiya 2023: How To Invest In Gold And What Is Digital Gold?

Akshaya Tritiya 2023: Buying gold on occasion of annual spring time festival of Akshay Tritya is considered auspicious by many communities. Akshaya Tritiya is traditionally associated with buying or gifting gold, believing that it will bring good luck. This year Akshay Tritya will be celebrated on Saturday, April 22. 

Indians love investing in the yellow metal and India is the biggest buyer of gold in the world. Recently the price of gold surged to an all-time high and crossed Rs 60,000 per 10 grams but high prices do not deter people from investing in gold. These days there are many ways by which an individual can invest in gold apart from buying physical jewllery or gold bars.

A person can invest in gold by buying gold exchange traded funds (ETF), sovereign gold bonds (SGB), digital gold apart from buying physical gold jewellery and bars.

Here is how to invest in digital gold

Individuals can invest in 24 karat gold digitally that can be converted into physical gold any time an individual feels like. The best part of investing in digital gold is that it does not carry the risk of getting stolen and people can invest small amounts in buying digital gold. 

Individuals can purchase 24 karat purity gold online and store it in MMTC-PAMP's secure vaults free of charge, using their mobile wallets.

Customers can also request for gold to be delivered at their homes in the form of the minted coins or sell it back online to MMTC-PAMP.

Sovereign Gold Bond Schemes (SGBs)

One can buy digital gold through the gold bond scheme, which come with government guarantee and offer fixed interest rate.

SGBs are one of the cheapest ways to buy gold, as there is no goods and services tax (GST) or other charges added to the issue price of the bond. 

A minimum investment of one gram of gold is permitted. Individuals can buy a maximum of four kilogram. 

The bond is issued for a period of eight years with exit option after the fifth year, which can be exercised on the next interest payment date. 

SGBs offer an interest of 2.50 per cent per annum. 

Investing in Physical Gold

Individuals can buy physical gold which has been one of the oldest and favourite asset class for Indians in various purities starting from 24 karat to 14 karat. Physical gold can be purchased in form of bars from banks and in from of jewellery from local jewellers. However, gold purchased in form of jewellery attracts making charges and an additional 3 per cent Goods and Services Tax (GST)

Gold prices fluctuate on a daily basis and 24 karat gold was priced at Rs 60,620 per 10 grams, according to India Bullion and Jewellers Association (IBJA). Price of 22 karat gold on April 20 was 59,160 per 10 grams, 20 karat gold was priced at Rs 53,950 per 10 grams, 18 karat gold was being retailed at Rs 49,100 per 10 grams and 14 karat gold was priced at Rs 39,100 per 10 grams.