Methods to make profit in gold investment | Fusion - WeRIndia

Methods to make profit in gold investment

Methods to make profit in gold

Gold investment is highly common in India.

Many do it for the love of jewelry, and others for actual investment purposes.

However, jewelry is just one of way investing in gold.

There are many options in gold investment that give great returns.


Gold Futures

Gold futures can be bought easily. One can trade them on the MCX. These work based on contracts. If you buy a gold contract which expires on a particular month, you have to make sure you settle the contract by that time.

Be warned that Gold Futures have risk to them because of the need to settle the contract even with a loss if you have to.

However, buying gold in the futures market lets you pay only a 10 per cent margin. If the gold price is ₹30,000 in real life, you only pay ₹3000 as margin money.

Gold coins and gold bars

These have the advantage of being able to be held when going through a loss period. You can get them from jewelers or banks.

Jewelers usually sell them for a slightly lower price than banks but banks have 100 percent assurance of quality.

Remember that gold coins and bars need storage which has a cost. So they are not the best for profit.

E gold

Investing in e-gold is one of the best and cheapest ways to buy gold. You get gold in electronic form just like in shares. They can be bought and sold as per your decision.

Sovereign gold bonds

These are bonds related to gold. On these bonds, you get an interest rate of 2.75 per cent. They are mainly issued to reduce the gold consumption in a country.

Even with all of these methods, there is still the traditional way of investing in gold: jewelry. You can always bet on these, as Indians’ love for gold usually makes their price go up.

You can also buy gold ETFS regarding which you can here.

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