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Learn how to invest in the gold exchange-traded fund?

  • Writer: YashJ
    YashJ
  • May 17, 2022
  • 1 min read

Gold ETFs are transparent vehicles that allow small investors to diversify into gold in a cost-effective and efficient manner. An ETF that tracks the domestic physical gold price is known as a Gold ETF.



Gold had climbed to almost Rs 56,000 levels in early March. Gold prices have fallen by over Rs 1,500 per gramme this week. Gold prices are currently at a three-month low; if you want to buy in gold, this could be a good time.



Gold is a Global Asset Class, and there are a number of reasons why GOLD ETFs should be included in retail investors' portfolios, as well as how they are superior to other gold investment options.



* There's no need to be concerned about contaminants or adulteration.



* Digitally stored



* Real-time monitoring of your investment values



* Very liquid



The costs of buying, selling, storing, and insuring actual gold are substantially higher.



Like any other company's stock, gold ETFs are listed and traded on the NSE and BSE. Gold ETFs, like any other corporate stock, trade on the cash segment of the BSE & NSE and can be bought and sold at market prices on a continuous basis.



Opening a Demat and trading account requires certain documents.


* PAN card (Mandatory)

* Proof of your identity

*Proof of address


Investing in Gold ETFs: A Guide

To invest in Gold ETFs, you'll need a Demat account and a trading account, as well as an online account for stock trading.



After you've set up your account, go to your broker's trading interface and select Gold ETF to place an order. The orders are forwarded to the exchange, where they are matched with sell orders and executed, followed by a confirmation.

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