This is a form of gold trading in paper gold through which you own the value of gold without actually buying it. The transactions of ETFs take place on stock exchange with gold as an underlying asset. You can invest in multiple industries according to your investment strategy, in many ways, it’s similar to a mutual fund investment despite the fact that the ETF share prices fluctuate all day as the ETF is bought and sold which makes it different from mutual funds that only trade once a day after the market closes.
Gold Futures & Options
Gold Futures: This investment scheme is for those who are well aware of how to trade gold online works and are familiar with the ups and downs of gold trading market and are little experienced in it. Putting it simply, futures are a financial contract between an investor and a seller. The investor agrees to purchase an asset from the seller at an agreed-upon price based on a date set in the future.
Gold Options: An advantage of options is that you can use gold options to attain a position in gold for less up-front capital than buying physical gold or gold futures. You can use options to profit whether gold prices rise or fall – or even stays the same.To buy gold options traders need a margin brokerage account that allows trading in futures and options, provided by services such as Brokers.
Investing In e-Gold
E-Gold is another form to trade gold online where no physical gold is traded. The biggest benefit of e-gold is that it allows investors to invest in gold with much lower denominations than physical gold. If you have a Demat account, you can easily buy and sell e-gold through it and at any point of time where you want physical possession of gold, you can redeem your e-gold units to your accounts and get it. This type of investment is quite safe and requires no serious investment skills, hence, is mostly preferred by people in regular jobs. Checkout latest blog best actor in india.
Sovereign Gold Bonds
Just like an ETF, it is another form of gold trading online and owning paper gold. These gold bonds are issued by RBI on behalf of the central government via a window for fresh sale of SGBs to investors. Sovereign Gold Bonds are denominated in Grams of Gold and the minimum subscription quantity is 1 Unit i.e. 1 Gram of Gold.The process takes place almost in every quarter (every three months) and the window is opened for a week.
Investors must buy the earliest issues at market value which are also listed in the secondary market. The price of a unit in sovereign Gold Bonds is directly linked to the price of Gold. You get a 2.5 % of interest semi-annually or you can gain whenever there is rise in price of gold by redemption or exiting your investment at that time.
If you have digital banking on your smartphone, you can easily access digital gold. Using your mobile wallet, you can easily do online gold trading and buy gold which is stored in insured vaults by the seller on behalf of the customer. You don’t need to actually store gold physically which is quite insecure. There are various companies that offer this digital gold investment scheme, once you buy gold from any of these companies, they actually purchase physical gold on the monetary value of your payment made to them. They store gold on your behalf and you don’t get any interest paid on it. However, you can withdraw or sell it anytime you want. This is suited for those who are looking for short-term investment plans, for long-term gold investments, one must go for the above-mentioned SGBs and ETFs.