How to Invest in Gold this Festive Season


Gold is often the most loved precious metal in India. It is not merely an amazing ornament but a good hedge from inflations and falling markets as well. Another known trait of gold is that you can liquidate it with much ease no matter where you are located. For most people, gold is a sign of opulence and purity. It is gaining fame as an investment asset since it helps add value to your portfolio. It is best to consider investing in gold during the festive seasons. However, you need to ensure that you do not go overboard as well. Financial experts state that gold shouldn’t go beyond 5 to 10 percent of your portfolio.

With the prices of gold increasing every day, buyers should be aware of the best tips and avenues to buy gold. Jewellery has been a conventional way of acquiring gold for decades. This is the typical way of purchasing physical jewelry. People also invest in gold bars, coins, utensils, and statues.

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What factors drive the Gold rally?

In general, it has been witnessed that investors often tend to opt for gold when there is a market crash, however, now even when marketplaces are rallying, the price of gold is still continuing to inch higher. In the recent past, factors like the speculations regarding lockdowns, and international central banks’ strategy to print money more rapidly to boost spending, have led to a rare blend of sluggish growth and rising inflation. In such uncertain times, people are seeking safe havens that won’t lose value anytime soon. Though there was some stagnation in the price of gold for nearly 3 years, it easily made up for the deficits in just 6 to 12 months, during the Corona period. With prices going up by nearly 40 percent, investors have restored confidence in gold that this is one of the trustworthy alternatives when they are seeking to diversify their portfolio.

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How to approach gold investment?

There are numerous ways to invest in gold. You can select how you wish to go ahead with your investment by considering the nature of each form to find which one is most secure for you. You should also read the reviews such as check out this Goldco review. The alternatives include the following;

Physical gold

This is the traditional means of holding gold. It provides you with maximum liquidity. But, it calls for the expenditure of insurance and storage as well. When you opt for physical gold, you can invest in gold coins, jewelry, or some gold accumulation schemes that are provided by the jeweler to acquire a gold product of your pick.

Digital gold

This is the modern way to acquire gold. It is also potentially the low-cost and safest way. It offers you the flexibility to convert your gold into physical form whenever you want. You need to accumulate 0.5 grams of gold, at least. The best thing about this alternative is the investment adaptability. You can just begin with Rs. 50 and continue to invest more as and when you wish.

Paper gold

This is yet another proper cost-effective alternative to physical gold. It incorporates options such as Sovereign Gold Bonds (SGB) and Gold exchange-traded funds (ETF). Whilst ETF offers the flexibility of purchasing and selling gold anytime you want through exchanges, you can start investing in it via SIP too. But, when you opt for this alternative, you need to purchase 1 gram of gold, as a minimum. Conversely, SGB bonds are issued by the central government and do not offer as much flexibility as the purchasing window is unlocked by the government for a particular period only.

Continued global ambiguity that has fuelled the gold flow is anticipated to continue for some time. Thus, if you are looking to diversify your portfolio, this is the right time to do it. The key here is to split your portfolio by opting for other jewelry items like the ladies’ diamond necklace, however, allocation to gold class should preferably not surpass 15% for now.

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