How to invest in gold in India


How to Invest in Gold? We all love Gold. Especially, in India gold is a status symbol. Indian women love Gold. It is wearing on every festival occasion or every household functions. Indian people believe Gold as the best option for investment in India. Even the prices of Gold are rising day by day. After China, India is the 2nd country where the Gold has consumed. According to World Gold Council, Indian households have the highest private gold holdings in the world with 24000 Tonnes estimation (as in September 2017).

Gold is always considered a long-term investment. It has noticed that whenever the stock market index increases, the prices of Gold decrease & vice-versa. But this decrease in cost never sustain down & it turns back quickly. If you want to know more about Gold, why you should invest, how you can invest, then you are at the right place to get this information.

“Gold opens all locks. No lock will hold against the power of gold”. — George Herbert

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There are several reasons why you should invest in Gold. But before further move on, let me clear you Gold Investment is only for Long Term investment. If you think to invest for a shorter period, then you should avoid investment. Gold investment can give return every ten years. That is more return received from Fixed Deposits (FD). Wherever you invest your money in gold, you will be charged 3% taxes always. Now, let us talk about why you should invest in Gold:

1) Inflation Rate

As we experienced the inflation rate plays a crucial role in the economic factor. In the case of Gold, as the inflation rate of the country increases, the price of gold also increases. It always outperformed the inflation rate.

2) Return on Investment

The return on Gold investment is not as per the return received on the stock market or real estate. Even the investment is not so high. Every average Indian can easily invest their money in gold. Always remember if you decided to invest money in gold then invest for a longer period to get at least a 10-12% average return.

3) Help in Making Wealth

It is giving a 10-12% return still it can help you to make your wealth. About the money, we are talking all the time that the more the money we have, the more we rich. But this is not true as the money/currency is fake money. Real money is gold being always. As the inflation rate increase, the value of a country’s currency goes down & the value of Gold Increases.

In 2004, 1USD was ₹45.32/- and the gold price per 10gm was 5850/-. Now in 2020, 1USD is ₹75/- and gold price per 10gm is 48000/-. That clears the wealth that can be created by gold is protracted.

4) Compared with the Mutual Fund and Stock Market

Now, compare with mutual funds and the stock market. There is high volatility in the stock and share market due to this high risk involved. But the prices of Gold are more stable to compare. People who do not want to take risks and can lock their money, the Gold investment are perfect for them. 


Invest in gold in India is very easy. There are several options through which you can invest your money to buy this precious metal.

1) Buy Jewellery

In India, the easiest way to invest money is to buy Jewellery. Buying jewelry has more negative cons than conclusive. Buying jewelry for investment is the wastage of money. Jewelry buying is higher is cost as the making charges applicable. The quality is also an issue. The more important is safekeeping at home is more crucial.

2) Gold Coins and Bars

Gold coins and gold bars are considered a good investment. The value of coins and bars are more compared with the jewelry. Even the purity or quality is better than jewelry. There are the only coin and bar making charges applicable. Anyone can buy coins and bars the best value can secure when you buy a 10gm bar or coin. It can easily buy at banks or jewelry shops. But remember when you buy the bars or coins from the bank, they will not buyback form you. You can sell at the jewelry shops only. Also, while selling you will not get the market price of gold.

3) Gold Mutual Funds

Gold mutual funds are very trending these days. Here you need not buy any physical form of gold. There are no making charges applicable. To obtain these gold, you must have only a Demat account. That is the best form to buy gold online. Anyone can buy gold with just ₹1000 every month. The cost to obtain a gold mutual fund would be higher compared with gold ETF’s.

4) Digital Gold

Digital Gold can also buy Gold with just ₹1/- only. There are so many payment portals like Paytm, google pay, phone pay, HDFC Securities, etc. But remember the buying price and selling price of digital gold is always different. The buying price would be higher & the selling price would be lower comparatively.  In the short-term, there are high chances of loss. There are high purity of gold and no issue in safekeeping. The gold is always present in your phone with a password protected. When you convert digital gold into the physical form you must give making and delivery charges. You can buy only coins and bars in physical form.


The government launched the Sovereign Gold Bond. This scheme is for the investment to avoid buying physical gold. According to this, the amount locked for a period of 8years with an exit option in 5th, 6th, and 7th year. Nobody can withdraw their amount before that period. After the completion of the timeframe, at any juncture, the amount can be restrained. 

At the time of withdrawal, you will get the market price of the gold whatever it is. Also, you will get some interest in approx. 2.5% per annum. You can buy gold as min. of 1gm and max. up to 4Kg Only.

This gold bond can buy from banks, NBFC’s, Post Offices, and others as specified by the government. In SGB, you need to keep safe your bond papers only for the period. In SGB the only main negative point is it may not fetch you conclusive returns. Because if gold price get down you may end with negative returns only. Also, the 2.5% interest is taxable.


India is full of festival country. There are some festivals on which the demand for gold gets increased. In India, the best time is to buy near Diwali festival. The Akshaya Tritiya is the time where Hindu pandits suggest buying gold.

But if you buy Gold at a lower cost then the best time is to buy between February to July. After, the demand increases due to the festival hit India.


If we see the historical prices of Gold, you will find the prices are always increasing. The gold prices in the year 1973 was ₹22000/- per Kg & today in 2020 the amount is ₹42 lac per Kg. That proves if you wanted to be wealthy, you always invest in a protracted.

Invest in gold over the years


If you wanted to invest your money but do not take the risk to invest in the Stock market, then you may invest in the gold. Investment in gold has both conclusive and negative cons associated with it. There are several ways on which you can invest your money in Gold.

Either you invest in Gold or not is your choice. But you must know that the investment in gold can give you a better return than bank FD schemes. It is real wealth rather than currencies.  

Always remember,

“Like Liberty, gold never stays where it is undervalued”. — John S. Morrill

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