Paper Gold Investment in India

Paper Gold Investment in IndiaDue to growing gold price in India today and across the globe, many individual investors are turning their attention to gold investment in India. Aside from obvious physical gold investment in Indian banks, there are other options that some consider to have more advantages over buying physical gold coins, namely, paper gold investment in India.

Paper gold investment in India as an informal term to refer to a gold ETF, exchange traded fund that entitles its owner to a precise amount of intangible gold assets. You ownership of the gold assets is defined in a paper agreement resulting in the “paper gold investment in India” mock term. There are some advantages and disadvantages in paper gold investment in India financial mechanism.

Investing in a gold ETF does not have many risks and extra costs associated with possession of physical gold that can be stolen and incurs storage costs if stored in a bank’s security box. The purchasing prices for gold ETF’s are solely based on the current market price of gold which makes them a worry-free investment. At this point there are several gold investment companies that are registered on the Bombay stock exchange, including UTI Goldshare, Gold Bees, Kotak Gold, Reliance Gold and more.

One of the main advantages of participating in paper gold investment in India is flexibility since you can buy any number of units of gold ETF shares that are equal to one gram of 24 karat gold. For gold bullion coins, you have to save up to buy, with paper gold you buy as much or as little as you wish. You can sell your gold ETF shares at any time when you see a price jump without incurring extra costs like with selling physical gold. You can also set up a Systematic Investment Plan allowing you to automatically buy a set number of shares every month or quarter to take advantage of paper gold investment in India.

One of the obvious disadvantages of paper gold investment in India that you have no tangible assets to show for your money which might not be suitable for some gold investors who would be better off buying physical gold coins.