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News18
13 hours ago
- Business
- News18
Physical Gold Vs ETF: Pros, Cons, Taxability, Making Charges, Know All The Differences
Last Updated: Physical gold offers emotional value but comes with storage and resale challenges. Gold has always been a trusted investment in Indian households, especially in the form of jewellery, coins, or bars. But now, many investors are looking at digital options like Gold ETFs (Exchange Traded Funds). Both have their pros and cons, depending on your needs. Here's a simple comparison of physical gold and Gold ETFs. Why Do People Still Buy Physical Gold? Gold jewellery isn't just an investment in India; it holds cultural and emotional value. People buy it for weddings, festivals, and gifts. Over the last 10 to 15 years, physical gold has delivered strong returns of around 9–10 per cent per year, and even 12 per cent annually in the last decade, according to the India Bullion and Jewellers Association (IBJA) data. These returns have beaten several fixed-income investments. But Physical Gold Has Drawbacks Too – High making charges: Jewellery often comes with 15–25 per cent making charges, which are not recoverable on resale. – Storage issues: You need to store it safely, which can be stressful and costly. – Resale challenges: Selling gold jewellery can lead to deductions or lower prices, especially if you didn't buy it from the same jeweller. Gold ETFs are digital investments backed by real gold. They are traded on stock exchanges, just like shares. Launched in India in 2007, they let you invest in gold without worrying about storage or safety. ETFs closely follow gold prices and have given 8.5–9.5 per cent average annual returns over the past decade. Some funds have even matched or outperformed physical gold returns when held for 15 years. Benefits of Gold ETFs – Easy to buy or sell: You can buy or sell ETFs anytime through your demat account. – No storage hassle: No lockers or physical safety required. – Low cost: Expense ratios range from 0.3 per cent to 1 per cent, much lower than jewellery-making charges. – Better tax treatment: If held for over 3 years, ETFs are taxed at 20 per cent with indexation, reducing your tax outgo. Both physical gold and ETFs are taxed as long-term capital gains (LTCG) if held for over three years. But with ETFs, it is easier to track your investment and get proper value on sale. On the other hand, physical gold resale might involve hidden charges, and it is harder to prove the original cost in some cases. What should you choose? If you are looking for: – Convenience, transparency, and long-term growth, then go for Gold ETFs. – Sentimental value, gifting, or future use in weddings, then pick Physical gold may suit you better. Experts suggest putting 5–10 per cent of your portfolio into gold, and for most modern investors, a major part of that can be in digital formats like ETFs due to ease of use, tax efficiency, and liquidity. view comments First Published: News business Physical Gold Vs ETF: Pros, Cons, Taxability, Making Charges, Know All The Differences Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
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Business Standard
2 days ago
- Business
- Business Standard
SGB 2017 investors set for 250% returns: Here's all you need to know
Investors in the Sovereign Gold Bond (SGB) 2017-18 Series II, issued in July 2017, are set to receive the maturity proceeds on July 28, 2025. According to the Reserve Bank of India (RBI), the final redemption price has been fixed at Rs 9,924 per gram, delivering more than 250 per cent returns for those who stayed invested for the full eight-year tenure. How the final payout was calculated According to the RBI's release dated July 25, 2025, the redemption price has been derived based on the simple average of closing gold prices of 999 purity, published by the India Bullion and Jewellers Association (IBJA), over three working days in the preceding week (July 21–25). This calculation method is consistent with SGB scheme norms and ensures alignment with prevailing market prices. From Rs 2,830 to Rs 9,924: A solid gold gain The issue price of the SGB 2017-18 Series II was Rs 2,830 per gram (excluding the Rs 50 online discount). With the final redemption value now at Rs 9,924 per gram, investors have gained Rs 7,094 per gram over eight years, translating to an absolute return of 250.67 per cent, excluding interest income. In addition to the price appreciation, investors also earned 2.5 per cent annual simple interest, paid semi-annually, making the total effective yield even higher. Redemption process: What investors should know SGBs have a fixed maturity of eight years, with an early exit option after five years. One month prior to maturity, investors receive an intimation from their bank or broker. The proceeds are automatically credited to the registered bank account on the redemption date. It is important to update any change in bank details or email ID with the relevant intermediary before the maturity date to ensure a smooth payout. What are Sovereign Gold Bonds? SGBs are government securities issued by the RBI on behalf of the Government of India. Denominated in grams of gold, they offer a way to invest in gold without the costs and risks of holding it physically. They are particularly attractive due to: -Capital gains tax exemption if held till maturity -Backing by the sovereign guarantee
Hans India
6 days ago
- Business
- Hans India
Silver soars to record high, crosses Rs 1.14 lakh per kg mark
New Delhi: Silver prices continued their upward march, scaling a new all-time high and crossing the Rs1.14 lakh per kg mark. This significant rally comes amid strong global cues and steady demand in the domestic market. The price of silver increased by Rs1,028 to Rs1,14,493 per kilogram on Tuesday, up from Rs1,13,465 the day before, according to the India Bullion and Jewellers Association (IBJA). With this, silver has broken its previous record high of Rs1,13,867 per kg, set on July 14. The futures market is also reflecting the steep increase in silver prices. The silver contract for September 5, delivery on the Multi Commodity Exchange (MCX), increased by 0.39 per cent to Rs1,15,500 per kg, demonstrating traders' and investors' ongoing optimism. 'Looking ahead, US Manufacturing and Services PMI data will be closely tracked for direction. In the near term, gold is expected to remain range-bound with MCX support at Rs98,500 and resistance near Rs1,00,500,' said Jateen Trivedi of LKP Securities. Gold price also saw a significant increase. According to IBJA, the price of 24-carat gold rose by Rs612 to Rs99,508 per 10 grams on Tuesday from Rs98,896 the day before. Similarly, the price of 18-carat gold reached Rs74,631 per 10 grams, while that of 22-carat gold increased to Rs91,149 per 10 grams. Global trends are also contributing to the surge. On the Comex exchange, silver prices rose by 0.27 per cent to $39.44 per ounce, while gold saw a 0.26 per cent increase, trading at $3,415.20 per ounce. Analysts attribute the rising prices to persistent global economic uncertainties, increased industrial demand for silver, and renewed investor interest in precious metals as safe-haven assets.
Hans India
6 days ago
- Business
- Hans India
Silver hits record Rs 1.15 lakh per kg, gold crosses Rs 1 lakh mark again
New Delhi: Gold and silver prices surged sharply on Wednesday, with both precious metals scaling new heights in the domestic market amid mixed global cues. While 24-carat gold breached the Rs 1 lakh mark per 10 grams again, silver touched a new all-time high of over Rs 1.15 lakh per kg. The price of 24-carat gold increased by Rs 1,025, from Rs 99,508 on Tuesday to Rs 1,00,533 per 10 grams, according to data published by the India Bullion and Jewellers Association (IBJA). The price of 22-carat gold also saw a notable rise, climbing to Rs 92,088 per 10 grams from Rs 91,149. Similarly, the price of 10 grams of 18-carat gold increased from Rs 74,631 to Rs 75,400. The price of silver increased by Rs 1,357, from Rs 1,14,493 a day earlier to Rs 1,15,850 per kg. Silver has increased by more than 34 per cent since January 1 this year, when it was priced at Rs 86,055 per kg. Meanwhile, in the futures market, gold and silver continued their upward trend. On the Multi Commodity Exchange (MCX), the gold contract for August 5 was trading 0.17 per cent higher at Rs 1,00,500. The silver contract for September 5 rose 0.58 per cent to Rs 1,16,323. Globally, however, trends were mixed. On COMEX, gold prices dipped slightly by 0.08 per cent to $3,441.10 an ounce, while silver rose 0.52 per cent to $39.76 an ounce. Experts noted that domestic gold prices remained range-bound near record levels, influenced by steady international gold rates and a stable rupee. Silver, on the other hand, continued its strong upward momentum both domestically and internationally. "Gold prices remained range-bound near higher levels, with MCX trading close to Rs 1,03,500, taking cues from COMEX gold, which held steady around $3,424. The rupee also stayed flat, limiting volatility in domestic gold prices," said Jateen Trivedi of LKP Securities. Investors now await key economic cues from upcoming US Manufacturing and Services PMI data. In the short term, gold is expected to trade within a range of Rs 99,000–Rs 1,01,500 on MCX, Trivedi said.
India.com
16-07-2025
- Business
- India.com
Gold And Silver Prices Decline For 2nd Consecutive Day
New Delhi: Both gold and silver saw a drop during Wednesday's trading session, continuing their downward trend for the second consecutive day this week amid looming uncertainty around the US tariffs. The price of 24-carat gold dropped by Rs 416, from Rs 97,916 to Rs 97,500 per 10 grams, according to the India Bullion and Jewellers Association (IBJA). Similarly, the price of 22-carat gold decreased by Rs 381 from Tuesday's price of Rs 89,691 to Rs 89,310 per 10 grams. Additionally, the price of 18-carat gold dropped, from Rs 73,437 per 10 grams in the previous session to Rs 73,125 per 10 grams. Following the trend, the price of silver dropped from Rs 1,11,997 per kilogram to Rs 1,11,200, a decrease of Rs 797. In the week ahead, key U.S. data, including PPI and jobless claims, will guide further movement, according to analysts. The futures market, meanwhile, is moving upward. Both gold and silver displayed a positive trend in the futures market, despite the drop in spot prices. Gold for delivery on August 5, 2025, was trading at Rs 97,415 on the Multi Commodity Exchange (MCX), up 0.21 per cent. At Rs 1,11,805, silver futures for delivery on September 5, 2025, were up 0.29 per cent. The price of gold and silver increased slightly on the global stage. Silver increased by 0.34 per cent to $38.24 per ounce on the Comex exchange, while gold increased by about 0.27 per cent to $3,345.60 per ounce. "Gold is caught in a consolidation, with prices remaining rangebound between $3,300 and $3,500 per ounce. The market is missing an imminent trigger to restart the recent rally, despite a broad-based agreement on a favourable fundamental backdrop," said Julius Baer, Head of Economics at Carsten Menke. 'Central bank buying is still sound but not as strong as earlier in the year. We still see a longer-term favourable fundamental backdrop. Silver, meanwhile, broke out, first and foremost reflecting renewed investor interest. Its catch-up potential to gold seems to be very much exhausted. We lift our price targets but downgrade our view to Neutral,' Baer said.
