Dhanteras But buying gold is considered auspicious. Many people buy gold jewellery, coins etc. as per their capacity on the auspicious time of Dhanteras. This time there is a record rise in the prices of gold and silver. While the price of gold has crossed Rs 80 thousand per 10 grams, silver has also become weak. In such a situation, if you are planning to buy gold on Dhanteras for investment, then you should buy gold jewelery or invest in gold ETF (exchange-traded fund). Gold ETFs allow investors to invest in gold or gold-related asset classes, which are traded in the stock market. Let us know which of these two would be more beneficial for you to invest in.
In which case did investors get better returns?
There has been a record increase in the price of gold in the last one year. The price of gold was Rs 61,690 per 10 grams on October 21, 2023, which has increased to Rs 80,420 per 10 grams on October 21, 2024. That means there has been a record increase of Rs 18,730 in the price. This is equivalent to a percentage increase of approximately 30.3%. If we look at the last three years, the price of gold has increased by about Rs 32,850. In this way, gold has given a return of about 68.9% in the last three years. Gold has given a bumper return of 108.9% in five years. Now if we look at the Gold ETF scheme, the average return in one year has been 29.12%. Whereas, the returns in 3 years and 5 years have been 16.93% and 13.59% respectively. Thus it is a lower return than physical gold. Commodity experts say that if you are planning to invest in gold for a long time then buying physical gold will be beneficial. At the same time, if you want liquidity then gold ETF would be a better option.
Selling gold ETF is easier than jewellery.
Physical gold usually commands a higher price due to manufacturing and storage costs. On the other hand, the cost of acquisition and ownership of gold ETFs is less expensive. One cost associated with gold ETFs is brokerage charges, which have to be paid when buying and selling. Another advantage of gold ETFs is that selling gold jewelery or coins may take more time, but gold ETFs can be bought or sold quickly in the stock market. If you are investing in gold for trading then you can opt for Gold ETF.
