Ultimate Guide to Investing in Gold This Dhanteras 2024

Dhanteras is a festival of wealth prosperity celebrated in India. It is a special occasion that is deeply rooted within Indians and marks the beginning of the much-awaited Diwali festivities. Unlike other festivals, Dhanteras is a celebration of spiritual victory. During the span of five to six days of festivities, Goddess Lakshmi emerges, which signifies wealth and fortune.

Table of Content:

Digital Gold
Gold Exchange Traded Funds (ETF)
Sovereign Gold Bonds (SGB)
Gold Mutual Funds
Gold Ornaments
List of Important Days/Festivals to Buy Gold

It is also believed that when you purchase new items like gold and silver, during this auspicious time of the year it may bring good fortune and prosperity to the household. One major advantage of living in modern times is that you have multiple options on how to invest in gold online without even buying physical gold.

Indians believe that purchasing gold on auspicious days is important for attracting positive fortune. That is why we seek the best gold loan interest rates while buying gold. And what time of the year could be better than Dhanteras to invest in gold. Financial instruments such as gold loan fall under secured loans that allow you to obtain funds in times of dire need.

Here are five smart ways to invest in gold this Dhanteras: -

Digital Gold

Digital gold is a mode of investing in physical gold. Like regular gold, it can be bought online and is stored in insured vaults by the seller on behalf of the customer. This type of investment allows you to buy gold in an accessible manner. The millennials and Gen Z age group should consider buying and investing in digital gold, and make the best out of it because digital gold offers the advantage of purchasing gold in small quantities. Investing in digital gold consistently and in small quantities can lead to an accumulation of wealth.

Suggested Read: What Is Digital Gold and How Does It Work?

Gold Exchange Traded Funds (ETF)

A Gold ETF is an exchange-traded fund (ETF) that aims to track the domestic physical gold price. This type of investment instrument is passive in nature that is based on gold prices. Gold ETFs offer convenient and cost-effective exposure to gold's price movements. Gold ETFs also prove to be a cheaper option for investors. To get started, having a demat account is mandatory, so you can park your money in Gold ETFs.

Sovereign Gold Bonds (SGB)

Sovereign gold bonds are a substitute for holding physical gold. The Bond is issued by the Reserve Bank on behalf of the Government of India. One major advantage of investing in SGB is that it minimizes the risks and costs of storage. They provide guaranteed interest returns along with gold price appreciation at the time of maturity. They offer tax benefits and are ideal for risk-averse investors seeking regular income.

Gold Mutual Funds

Gold Mutual Funds are actively managed mutual funds which are regulated by the Securities and Exchange Board of India. It is imperative to stay up-to-date about gold rate today while investing in gold mutual funds. This minimizes the risk associated with investing in a mutual fund. This type of investment is ideal for investors who want to diversify their portfolio.

Gold Ornaments

Despite inflation and a fluctuating economy, the value of gold jewellery remains pretty firm. Purchasing gold ornaments offers the dual benefit of investment and adornment, making it an ideal option for those having traditional preferences when investing in gold. Buying physical gold offers the advantage of easily passing the asset to your next generation as well as availing gold loan during financial emergencies.

List of Important Days/Festivals to Buy Gold

Makar Sankranti
Pushya Nakshatra
Ugadi and Gudi Padwa
Akshaya Tritiya
Navratri
Dussehra
Balipratipada

Gold is a long-term investment, this Dhanteras do not just consider buying gold ornaments, jewellery etc. but also consider the options of smart investment. Doing this can make your money work for you rather than you working for money. Factors such as risk appetite, investment goals and financial situation should be taken into consideration so that you can choose an option that suits you and your preferences.