Home / Finance / Personal Finance / Investors should stick to gold-linked instruments for transparent pricing

Investors should stick to gold-linked instruments for transparent pricing

Pricing is more transparent and some even pay interest regularly

Premium

When you invest in a gold-linked instrument, check if it is backed by physical gold.

5 min read Last Updated : May 29 2019 | 10:32 PM IST

Until a few years ago, 35-year-old Jamshedpur-based dentist Neelam Jain was your typical gold buyer. Her preferred mode of investing in the yellow metal was to purchase jewellery and gold coins. In recent months, however, she has shifted to gold-linked financial products, such as sovereign gold bonds (SGBs). “One does not worry about safekeeping or quality, as one does when buying physical gold,” she says.

According to recent estimates by the World Gold Council (WGC), Indians hold about 24,000-25,000 tonnes of gold, which makes it a crucial asset class that most investors need to manage prudently.

Physical or financial gold? If you

What you get on BS Premium?

Unlock 30+ premium stories daily hand-picked by our editors, across devices on browser and app.
Pick your 5 favourite companies, get a daily email with all news updates on them.
Full access to our intuitive epaper - clip, save, share articles from any device; newspaper archives from 2006.
Preferential invites to Business Standard events.
Curated newsletters on markets, personal finance, policy & politics, start-ups, technology, and more.

VIEW ALL FAQs

Need More Information - write to us at assist@bsmail.in