Indialends, 26 Sep 2025

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The Ultimate Guide to Saving and Investing in Gold

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Gold holds a special place in the hearts of Indians. It is extremely auspicious, and we love giving and getting gold in all our major events. It is that metal that intertwines with our country's culture and economy. For years, this precious metal has also been a major investment asset for us. Our parents always ask us to buy more gold and invest in gold. In this blog, we’ll try to understand why gold is good for saving and investing and how you can invest in gold.

Different Forms of Gold Investment Available in India

Physical Gold:

The most infamous way of investing in gold is in the form of buying physical gold. Gold coins, gold bricks, and gold jewellery are some examples of how you can invest in gold. This is also a traditional way of investing in gold because, for years, people have been buying gold in physical form. This method is a little tricky because you have to visit the seller physically and also need space to store it.

Gold saving scheme:

A gold savings scheme works similar to a monthly savings plan. You deposit a fixed amount each month to a jeweller, and at the end of the agreed period, you can use the accumulated money to buy gold. Unlike a bank, the jeweller doesn't pay interest on your deposits. Instead, they provide a discount or cash incentive when you make your final deposit to compensate for this.

Sovereign gold bonds:

Sovereign gold bonds are another way of investing in gold. The Reserve Bank of India (RBI) issues sovereign gold bonds as government securities. These bonds represent grams of gold, with the minimum investment being one gram and the maximum capped at the value equivalent of 4 kgs of gold. Investors receive a fixed annual interest of 2.5%, and the bonds have a set term of eight years. If needed, premature withdrawal is permitted after the fifth year.

Digital Gold by IndiaLends:

You can also invest in gold digitally on apps like IndiaLends. All you have to do is sign up on the app, click on buy gold, select the amount of gold you wish to purchase, and the gold will be directly transferred to your secure gold vault. This process is hassle-free and doesn’t require any physical visits. The gold you purchase is pure 24K, 99.9% pure gold. You can sell this anytime you wish.

Gold Exchange Traded Funds (ETFs)

Gold exchange-traded funds (ETFs) are like mutual funds that automatically follow the price of physical gold in the local market. These are listed on the stock exchange. Hence, gold ETFs provide the advantages of stock market flexibility and ease of investing in gold. When you redeem gold ETFs, you won't receive actual gold; you'll get its equivalent in cash. To invest in gold via ETFs, you need a Demat account and should purchase units during market trading hours. Gold ETFs are most suitable for investors looking to benefit from gold's price movements without owning physical gold.

Why invest in gold?

- Gold has long-term wealth preservation and stability.

- Gold aligns with our traditional values and cultural significance

- When there’s any economic uncertainty, gold prices don’t fluctuate too much.

Tips for Making Smart Decisions While Saving and Investing in Gold

1. Determine your Financial Goals:

The first and foremost step before making any investment is understanding how it aligns with your financial objectives. One more thing to note is that assessing risk tolerance is also essential. How much risk can you bear? Do you want this investment to be high or low risk? Or do you want it to be a long-term or short-term investment?

2. Stay Updated:

Keep an eye on the market trends and gold prices. While gold is comparatively a safer investment, it is essential to keep a check on the current market trends that might affect the price of gold. Make informed decisions based on current economic conditions.

3. Diversify your portfolio:

Incorporate gold as part of a diversified investment portfolio. Since it is a traditional way of investing, it is essential to understand where you want to invest your money and how you want to balance risks and returns effectively.

If you want to know more about the difference between Physical gold and digital gold, read the article here à What is Digital Gold? How is it different from Physical Gold?