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- Gold Price 2024; Gold ETFs Investment Benefits Explained | Exchange Traded Fund
New Delhi1 minute ago
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Gold prices may rise in the next one year. According to a report by American financial services firm Citibank, by mid-2025, the price of gold may reach $3000 (Rs 2.5 lakh) per ounce i.e. Rs 88,450 per 10 grams. This is 23% more than the current price of gold of Rs 73,339 per ounce.
According to this report, due to reasons like weakness in the US labor market and recession, the US Central Bank Federal Reserve may reduce interest rates. This may increase the price of gold and silver by the end of the year. In such a situation, investing in gold at this time can benefit you.
If you are also planning to invest in gold then investing in Gold Exchange Traded Fund or Gold ETF can be a good option. It has given a return of up to 24% in the last 1 year. In such a situation, here we are telling you about Gold ETF…
ETF is based on the rising and falling prices of gold
Exchange traded funds are based on the rising and falling prices of gold. One gold ETF unit means 1 gram of gold. That too completely pure. Gold ETF can be bought and sold on BSE and NSE just like shares. However, you do not get gold in it. When you want to withdraw from it, you will get money equal to the price of gold at that time.
5 benefits of investing in gold ETFs
- You can also buy gold in small quantities: Gold is bought in units through ETF, where one unit is of one gram. This makes it easy to buy gold in small quantities or through SIP (Systematic Investment Plan). On the other hand, physical gold is usually sold at the rate of tola (10 grams). Sometimes it is not possible to buy gold in small quantities when buying from a jeweler.
- You get pure gold: The price of Gold ETF is transparent and uniform. It follows the London Bullion Market Association, which is the global authority on precious metals. On the other hand, physical gold can be offered at different prices by different sellers/jewellers. Gold bought from Gold ETF is guaranteed to be 99.5% pure, which is the highest level of purity. The price of the gold you buy will be based on this purity.
- There is no cost involved in jewelry making: Buying gold ETFs costs a brokerage of 1% or less, plus a 1% annual portfolio management charge. This is nothing compared to the 8-30% making charges you have to pay to jewellers and banks, whether you buy coins or bars.
- Gold remains safe: Electronic gold is kept in a demat account in which only annual demat charges have to be paid. Also, there is no fear of theft. On the other hand, in case of physical gold, apart from the risk of theft, one has to spend on its security as well.
- Ease of doing business: Gold ETFs can be bought and sold instantly without any hassle. Gold ETFs can also be used as security to take a loan.
How can you invest in this?
To buy Gold ETF, you have to open a demat account through your broker. In this, you can buy units of Gold ETF available on NSE and the equivalent amount will be deducted from the bank account linked to your demat account. Gold ETFs are deposited in your account two days after placing the order in your demat account. Gold ETFs are sold through the trading account only.
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