By Abhay Ray 
Introduction
The rising gold prices have increased the tension for common investors and buyers. An even bigger concern is that people buying gold will now have to pay GST and making charges based on the increased prices.For instance, if you are buying a gold chain worth ₹80,000 with a 15% making charge. Gold Investment: In recent days, there has been a significant rise in gold prices. However, on Wednesday, there was a slight decline in the price of gold. On Wednesday, in the bullion market of Delhi, the price of 99.9% pure gold dropped by ₹340, reaching ₹87,960 per 10 grams. Similarly, the price of 99.5% pure gold also decreased by ₹340, reaching ₹87,560 per 10 grams. It is worth mentioning that on Tuesday, the price of 99.9% pure gold was ₹88,300 per 10 grams.
As Gold Prices Rise, Making Charges and GST will also Increase
The rising price of gold has increased the tension for common investors and buyers. An even bigger issue is that those buying gold will now have to pay GST and making charges based on the increased prices. For example, if you are buying a gold chain worth ₹80,000 with a 15% making charge, you will have to pay ₹80,000 for the gold, ₹12,000 for making charges, and ₹2,400 as 3% GST. This means your ₹80,000 chain will actually cost you ₹94,400. It’s important to note that as gold prices rise, the making charges and GST will also increase at the same pace.
Gold ETFs: The Best Option for Investment
If you are an investor who prefers to invest in gold, Gold ETFs will be your best option. Gold ETFs are a category of mutual funds. With Gold ETFs, you don’t have to pay making charges or GST. Through Gold ETFs, you invest in gold bullion. One unit of a Gold ETF is equivalent to 1 gram of 24-carat gold. Gold ETFs can be bought and sold on the stock market. When you sell a Gold ETF, you do not receive physical gold, but the equivalent amount in money is directly transferred to your account. To trade in Gold ETFs, you need a Demat account.
More Profit in Gold ETFs than Physical Gold
The price of Gold ETFs fluctuates with the price of gold. When gold prices rise, the price of one unit of Gold ETFs also increases. This means you will earn the same profit on Gold ETFs as you would on physical gold. In fact, you may earn more with Gold ETFs than with physical gold. This is because when you sell physical gold, you only get the value of the gold, and the money spent on GST and making charges is wasted. However, with Gold ETFs, there is no GST or making charge, so you save a significant amount of money.
Benefits of Gold ETF
- Price Appreciation : The price of Gold ETFs rises and falls with gold prices, giving you the same profit as investing in physical gold.
- No Making Charges or GST : Gold ETFs do not have making charges or GST. Therefore, your money is saved, and you can invest the full amount.
- Smart Investment : Gold ETFs are digital, meaning you don’t have to worry about storing or securing the physical gold. This investment can be made through the stock market.
- Liquidity : Gold ETFs can be easily bought and sold on the stock market. Instead of physical gold, you get cash directly.
- Easy Trading : To trade Gold ETFs, you need a Demat account, allowing you to buy them on the stock market.
Gold ETF vs. Physical Gold
- Liquidity : Selling physical gold can be more difficult because you need to find the right buyer in the market, whereas Gold ETFs can be bought and sold at any time through the stock market.
- Security : With Gold ETFs, you don’t have to worry about the security of gold, but with physical gold, you need a vault or a safe place to store it.
- Actual Gold Value : When you sell physical gold, you only get the value of the gold. But with Gold ETFs, you get the full amount, saving on making charges and GST.
If you’re thinking of investing in gold and want to avoid making charges and GST, Gold ETFs can be a smart option. Through them, you can invest in gold without any additional costs. Compared to physical gold, investing in Gold ETFs is not only more convenient but also saves you money.
Conclusion
In conclusion, as gold prices continue to rise, traditional methods of investing in physical gold come with added costs such as making charges and GST, which can significantly increase your overall expenditure. However, Gold ETFs present a smarter, more cost-effective alternative, offering several benefits such as no making charges, no GST, and the convenience of digital trading. Gold ETFs allow you to invest in gold without the worries of storage or security and provide liquidity and flexibility through the stock market. With the potential for higher returns and lower costs, Gold ETFs are an excellent investment choice for those looking to maximize their profits while avoiding additional fees. If you’re looking to invest in gold in a hassle-free and efficient way, Gold ETFs are undoubtedly the better option.
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