Gold can be viewed as one of the most appealing investment vehicles and it stems from the group of precious metals.Actual gold products, which actual consumers can buy include jewellery, gold coins, gold bars, gold ETFs, gold funds and, as of recently, the Sovereign Gold Bond. Sovereign Gold Bonds or SGB refers to the monetary asset that is issued in the form of digital/silver and gold coins consolidated by the Reserve Bank of India.
SGBs also provide a safe and efficient means through which people can invest in digital gold form of investment. These bonds are launched by Reserve Bank of India on its own and on behalf of Government of India and offer fixed rate of interest @ 2%. 50% per annum. Expressed in terms of grams of gold with one gram as its smallest investable unit, sovereign gold bonds are stable and transparent instruments of gold investment.
It is recommended the following documents are used for investment in Gold. It is good to note that participating in gold calls for some documentation. Whatever is invested over Rs. 2 lakhs in the physical gold, then the PAN Card is mandatory.
For ETF investments, investors need to open an account with a brokerage firm and subsequently acquire a Demat account with the same firm. Similarly, investing in Sovereign Gold Bonds necessitates the submission of KYC documents, including Aadhar, PAN, Voter ID, or Passport, akin to those required for purchasing physical gold.
