{"id":5819,"date":"2023-01-24T17:35:10","date_gmt":"2023-01-24T12:05:10","guid":{"rendered":"https:\/\/cacube.in\/?p=5819"},"modified":"2023-02-02T18:35:02","modified_gmt":"2023-02-02T13:05:02","slug":"investment-in-gold","status":"publish","type":"post","link":"https:\/\/cacube.in\/?p=5819","title":{"rendered":"Investment in GOLD"},"content":{"rendered":"\n<p>Gold is the most secure investment in times of crisis due to its features like global acceptance, liquidity, prestige, demand, etc. In India, people prefer to buy and accumulate gold for marriages, worship, investment, customs, etc. The middle-income group also buys a small quantity of Gold during Festival Season and holds it for any critical situation in life. But many people prefer buy extra gold for investment purposes. <strong>In times of global disputes\/unrest, people prefer to buy gold to ensure global security because gold is an internationally accepted currency. Hence in such times, prices of gold rise high, and the share market shows a downfall.<\/strong> But people have many doubts about buying gold like bill requirement, GST rate, PAN furnishing requirement for GOLD, TCS\/TDS requirement for GOLD and doubts about choosing between different options for investment in Gold like physical GOLD or digital gold or Sovereign Gold Bonds(SGB) or Gold ETF or Gold mutual fund. <\/p>\n\n\n\n<h2 class=\"wp-block-heading\">Types of investment in GOLD<\/h2>\n\n\n\n<p>There are different ways of investing in Gold:-<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Physical Gold.<\/li>\n\n\n\n<li>Digital Gold<\/li>\n\n\n\n<li>Sovereign Gold Bonds<\/li>\n\n\n\n<li>Gold ETF<\/li>\n\n\n\n<li>Gold Mutual Fund<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><span style=\"text-decoration: underline;\">Physical Gold &amp; Digital Gold<\/span><\/strong><\/h3>\n\n\n\n<p><strong>Gold &amp; Silver are subject to GST @ 3% (HSN 7106, 7108, 7109, 7111). Please ensure to obtain a proper GST invoice. GST is applicable on both physical as well as digital gold.&nbsp;<\/strong><\/p>\n\n\n\n<p><strong>Furnishing PAN card is made mandatory for purchasing gold above Rs. 2 lahks.&nbsp;<\/strong><\/p>\n\n\n\n<p><strong>TCS u\/s 206C(1h) @ 0.1% is to be collected on the sale on gold above Rs. 50 lakh. If TCS is collected then the buyer need not to deduct TDS u\/s 194Q @ 0.1% otherwise TDS provisions are applicable.&nbsp;<\/strong><\/p>\n\n\n\n<p><strong>Ensure that Gold purchase is properly reported and IF GOLD holding of a person is not justified by his income then he may have to face penalty or prosecution under the law.<\/strong><\/p>\n\n\n\n<p>Physical gold is considered more useful in case of emergency, war, unrest or global disputes. But digitally Gold does not have any purity issue, hence if purpose is only investment return then  digital gold is preferred over physical gold. Except physical gold, all other investment like digital gold, SGB, gold ETF and Gold MF depends on promise of issuer and enforceability of Government. <\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><span style=\"text-decoration: underline;\">Sovereign Gold Bonds(SGBs)<\/span><\/strong><\/h3>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">Sovereign Gold Bonds(SGBs)<\/span> are government securities denominated in grams of gold. They are substitutes for holding physical gold. SGB can be held in Demat form. The face price of SGB is fixed in proportionate to the gold price of 999 purity. Investors will also get interest @ 2.5% p.a. and SGB prices will also increase with an upward change in GOLD prices. Hence investors of SBG will get a return more than physical gold. Further, he will save on part of GST (as no GST on SBG) and marking charges (as no making charges in SBG like gold ornaments). But there is a lock-in period in SGB for 5 years. After which investor can sell SGB but capital gain on SGB will be taxable. But if he holds SGBs for 8 years then capital gain on SGB is exempt. Hence for long-term investment in gold, SGBs are better than physical Gold.&nbsp;<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong><span style=\"text-decoration: underline;\">Gold EFT (Exchange traded fund)<\/span><\/strong><\/h3>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">GOLD ETF <\/span>is only for short-term investors as there is no lock-in period in GOLD ETF. Investors can buy or sell as their own choice. But there is no fixed interest paid in ETF which is paid in SGB (2.5% p.a) The only gain in GOLD ETF is the rise in the price of gold. Hence long-term investors choose SGB over ETF.<\/strong><\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><strong>&nbsp;<span style=\"text-decoration: underline;\">GOLD Mutual Funds<\/span><\/strong><\/h3>\n\n\n\n<p><strong><span style=\"text-decoration: underline;\">GOLD Mutual Funds<\/span>, is a tool for small investors to take advantage of the rising prices of GOLD through combined funds. GOLD mutual fund further invests 99% of the accumulated fund to GOLD EFT and other short-duration government securities. Hence the return of GOLD Mutual Fund is not far away from GOLD ETF.&nbsp;<\/strong><\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gold is the most secure investment in times of crisis due to its features like global acceptance, liquidity, prestige, demand, etc. In India, people prefer to buy and accumulate gold for marriages, worship, investment, customs, etc. The middle-income group also buys a small quantity of Gold during Festival Season and holds it for any critical [&hellip;]<\/p>\n","protected":false},"author":39,"featured_media":5868,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","enabled":false},"version":2}},"categories":[1,399],"tags":[],"class_list":["post-5819","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-banking-investment","category-investing"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/cacube.in\/wp-content\/uploads\/2023\/01\/How-to-invest.jpg","jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p9X28M-1vR","_links":{"self":[{"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/posts\/5819","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/users\/39"}],"replies":[{"embeddable":true,"href":"https:\/\/cacube.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=5819"}],"version-history":[{"count":4,"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/posts\/5819\/revisions"}],"predecessor-version":[{"id":5869,"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/posts\/5819\/revisions\/5869"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cacube.in\/index.php?rest_route=\/wp\/v2\/media\/5868"}],"wp:attachment":[{"href":"https:\/\/cacube.in\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=5819"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cacube.in\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=5819"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cacube.in\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=5819"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}