How To Invest In Gold In India

How to Invest In Gold In India – Ways, Advantages And Disadvantages

Business Finance

Since ancient times, investing in precious metals has been considered one of the most reliable ways to preserve capital. Investing in gold today is available to everyone. However, there are many subtleties that a novice investor is good to know about. For all the reliability of bank storage, there is a risk of losing money invested in a precious metal.

Types of Gold Investment

To invest in gold with profit, you must first understand the available opportunities to do this.

There are four types of investing in gold:

  • Golden coins;
  • Gold bullion;
  • Gold contribution;

Golden coins

There are two types of precious coins:

  1. The cost of such is determined primarily by the quality of the material. As a rule, banks purchase these coins at a much lower price than they sell.
  2. Such coins are valued in accordance with the collection value. There are special catalogs.

If a person does not understand numismatics, it will be difficult for him to determine the true value of coins. It is best to seek the help of a professional for investing or selling gold for cash in India. If you want to find one of the best and trusted old gold buyer in Delhi to sell Gold jewelry, then you can also search on Google;  gold jewellery buyers in Delhi

You cannot buy coins without packaging. The gold coin must be in a sealed capsule. The latter must be carefully examined before purchase: whether it was opened.

Gold bars

It is believed that this type of investment is the most reliable. Its most important advantage is that you can store any number of ingots.

When purchasing an ingot, you must carefully look for any damage or contamination. And also you need to check the documentation – certificate and manufacturer’s passport. The following purchase data must be indicated on the check in India including cost, series number, try, quantity, weight, metal name, and transaction time.

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Golden contribution

Many banks offer a service for investing in gold. First of all, you need to understand what type of contribution is preferable:

Impersonal. The client transfers to the bank the amount of cash equal to the value of the gold purchased by him. Its profit will depend on changes in the value of the precious metal.

Standard Bullion purchase

If the client transferred the bullion to the bank, he will be able to pick them up at the end of the contract. However, it will be forced to pay value added tax.

 Gold Jewelry

Buying gold jewelry is a profitable investment, but it can be considered exclusively as a long-term one. We also note that usually the lion’s share of the value of the jewelry is the work of the master, and when reselling only the weight of the product is taken into account.

Another minus is that the gold jewelry contains not only pure gold, but also impurities.

The conclusions can be drawn as follows: investing in gold jewelry makes sense only when they are a rarity or a work of art.

How to open a gold deposit?

To open a gold deposit, you need:

  • passport;
  • TIN;
  • application for opening a deposit written in the established manner.
  • an agreement with a banking organization, in which the opening and closing of a deposit, acceptance and transfer, etc., are prescribed.
  • written request for the acceptance of precious metals in the bank’s vault.

Some documents from the list are executed and signed during the transaction directly with the bank.

How to get the maximum income?

Investing in gold is a popular and reliable investment. Gold is still the hardest and unwavering currency. However, to achieve maximum benefits, you should not invest all your money in precious metals: no more than 25% of your savings, choosing a calm period for this and not a time of crisis.

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Part of the money is worth investing in coins, since such an investment is not subject to VAT. You should not choose the smallest in size, since the assessment is made in grams. Coins must be stored carefully, otherwise the bank will not redeem them.

Pros and cons of investing in gold

When investing in gold, in each of the options considered there are pros and cons.

Pros of storing gold in a bank:

  • prestige;
  • reliability

The cons include:

  • long term investment;
  • between the purchase and sale price – a significant difference;
  • the need to pay VAT.

The coin option also has advantages:

  • availability;
  • the possibility of collecting.

But there are also disadvantages:

  • you need to be an expert and understand the value of coins;
  • Only the owner is responsible for safety and security.

Pros of buying gold jewelry:

  • availability: you can buy at any jewelry store;
  • the possibility of use as decoration.


  • if there is a need for a sale, it is not always possible to return the full amount of the cost;
  • gold in jewelry – not in its pure form, but with impurities.

The gold contribution also has pros and cons.

Of the advantages, we note:

  • gold is safely stored, so the risk of loss is minimal;
  • interest is accrued on gold deposits.

Of the main disadvantages, we note one: the lack of a money back guarantees. In force majeure circumstances, the bank will not return the money.

To invest or not to invest in gold, everyone decides for himself. It is reliable, but you will get a substantial profit with a long-term investment. Accordingly, for monthly cash receipts will have to look for other options.

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