Buying gold on Dhanteras is considered auspicious. Many people buy gold jewellery, coins etc. according to their capacity on the auspicious occasion of Dhanteras. This time there is a record rise in the price of gold and silver. While the price of gold has crossed Rs 80 thousand per 10 grams, silver has also become lakhtakiya. In such a situation, if you are planning to buy gold on Dhanteras for investment, then you should buy gold jewellery or invest in Gold ETF (Exchange-Traded Fund). Gold ETF allows investors to invest in gold or gold-related asset classes, which are traded in the stock market. Let us know in which of these two you will be more beneficial to invest.
In which did investors get better returns
There has been a record increase in the price of gold in the last one year. On October 21, 2023, the price of gold was Rs 61,690 per 10 grams, which has increased to Rs 80,420 per 10 grams on October 21, 2024. That is, there has been a record increase of Rs 18,730 in the price. This is equivalent to a percentage increase of about 30.3%. On the other hand, 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. In five years, gold has given a bumper return of 108.9%. Now if we look at the Gold ETF scheme, then the average return has been 29.12% in one year. At the same time, the return in 3 years and 5 years has been 16.93% and 13.59% respectively. In this way, 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 need liquidity, then Gold ETF will be a better option.
It is easier to sell gold ETFs than jewellery
Physical gold usually costs more 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 the brokerage fee, which has to be paid on buying and selling. Another advantage of gold ETFs is that it may take more time to sell gold jewellery or coins, 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 ETFs.
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