While writing this article, gold was priced at ₹99,820 for 24k gold — almost touching the ₹1 lakh mark. If you’re someone who has just started earning and wants to buy gold for the future but isn’t sure how to purchait at such a high price, you might find this helpful.
Gold, like any other stock or commodity, has a price history. Its price has shot up tremendously post-COVID-19, especially after 2020–21. The thing with gold is that almost every Indian household tracks its price on a monthly basis, making its price movements highly noticeable. Moreover, it has moved so fast and so significantly that most people remember when it was available at a much cheaper rate.
Here are 3 ways to invest in gold (starting as low as ₹100):
1. Gold Mutual Funds
Gold mutual funds are perhaps one of the best ways to invest in gold if you want to start small and accumulate physical gold at a future date. Some mutual funds that offer a ₹100 minimum investment include Nippon India Gold Fund, Axis Gold Fund, and Kotak Gold Fund.
2. Gold Exchange-Traded Funds (ETFs)
These are just like stocks, but their value is derived from physical gold held by the company that issues these ETFs. As of April 2024, GOLDBEES (a popular gold ETF) is trading at around ₹70 per unit. So, if you’re someone interested in buying gold like stocks, this option might be for you.
3. Gold Coins
These instruments are gaining popularity as they are readily available and usually do not include making charges. This is helpful for people who want to buy physical gold but avoid the unnecessary costs associated with jewellery. Gold coins can also be stored and later melted down if you want to make jewellery out of them. They are typically available in 24k purity.
Final thougths:
While investing in gold through mutual funds and ETFs is highly convenient, it’s important to note that the returns may be 1% to 3% lower than those of physical 24k gold. This is primarily due to management fees and other operational expenses incurred by fund houses, which are indirectly passed on to the investor. However, this slight difference in return is often outweighed by the ease, security, and accessibility of digital gold investments. For first-time earners or those just starting their investment journey, these options offer a smart and flexible way to gain exposure to gold — without the hassle of physically buying, storing, or securing it.
