Here's how you can hold gold in demat form just like equity shares or mutual fund units

Global crisis like COVID-19 emphasise on the need for gold in your investment portfolio - you should ideally have 10%–15% of your portfolio in gold. To capitalise on the benefits of gold as an investment, investing in digital gold trumps physical gold. Through this premium article, we explore why this is so and take a look at various ways of investing in digital gold such as ETFs, gold savings funds, and Sovereign Gold Bonds (SGB). By discussing the taxation of different gold products and critically going over their pros and cons, you will be able to make strategic investment decisions.

Gold jewellery is not generally considered a great investment as it loses it resale value by 15%–25% immediately on its purchase. This is due to making charges, purity issues, and the spread between buying and selling rates. Those who wish to invest in gold could consider buying it in physical or electronic form. Physical purchase involves buying gold coins and bars, while the electronic mode offers gold ETFs (exchange-traded funds), gold savings funds, and Sovereign Gold Bonds (SGBs).  Let us look at these various modes of buying gold electronically, with the pros and cons of each. We shall also discuss the advantages electronic gold has over physical gold, as well as taxation rules for these two options.  Why should you invest in gold? As gold provides protection against...