Gold is intricately woven into the very fabric of society. Not only does it symbolise prosperity and wealth, but it is also a form of financial security. Gold has been making it to the headlines frequently with its rising prices.
While there is more than one way to buy gold, the most convenient method is to open free Demat account and invest in gold ETFs. Wait, what are gold ETFs, and how can you buy them using a Demat account? Find out all your answers right with us!
What Are Gold ETFs?
If we have to explain gold ETFs in the simplest terms, it is gold in paper or dematerialized form. Purchasing one gold ETF is equivalent to purchasing one gram of gold. This means that you are essentially purchasing gold without taking possession of it using your Demat account.
Nevertheless, you might wonder if digital gold holds the same value as physical gold. Do not worry; gold ETFs are backed by gold with a very high purity!
How to Buy Gold with a Demat Account?
Now that you know what gold ETFs are, it is time to look at some ways in which you can procure gold ETFs and other forms of gold from your Demat account!
1. Investing in Gold Exchange-Traded Funds (ETFs)
If you invest in gold ETFs, you will no longer have to worry about storing and safeguarding physical gold. You can purchase gold ETFs using a Demat account and sell and hold them just the way you trade stocks.
In a nutshell, if you invest in gold ETFs, you avail the flexibility of the stock market and the simplicity of gold investments in one package!
To buy gold ETFs, simply log in to your account. You can browse through the ETF options and select the one that suits your investment objectives. Voila! You will find the ETF units being credited into your account.
There are many gold ETFs listed in the stock exchange market, and some of these are listed below:
- Axis Gold ETF
- Quantum Gold Fund
- Reliance Gold Exchange Traded Fund
- ICICI Prudential Gold Exchange Traded Fund
- Canara Robeco Gold ETF
- Birla Sun Life Gold ETF
- IDBI Gold ETF
- Religare Invesco Gold ETF
- Goldman Sachs Gold ETF
- HDFC Gold ETF
2. Invest in E-Gold
E-gold serves as gold in the Demat form. However, if you want to invest in it, you must create a separate account that caters exclusively to e-gold investments. This ensures that you can trade in gold without any hassles!
3. Gold Funds
Gold funds are very similar to mutual funds. One advantage they have over e-gold is that you do not need a specific Demat account that exclusively caters to these services. The market offers you a bountiful of gold fund investment plans.
All you need to do is ensure that you get your homework done about each plan before you make your investments.
Final Words
Some may even say that modern technology has descended to bless us. The gold ETFs have revolutionised the way we make and perceive investments.
It solves the issue of storing physical gold, and that’s not it! While physical gold’s value may increase with time, gold ETFs accrue returns on your investment!
Isn’t it an amazing deal? So what are you waiting for? Open free Demat account, choose the method you want to pursue to buy gold and start trading!
