How to Invest in Gold ETF
Gold ETFs are traded on various stock exchanges in India, where you can buy and sell them. These are just like shares, which you can buy and hold through your broker.
Should I Invest in Gold ETFs?
Gold ETFs track the prices of gold, so if you want to make money in gold ETFs, you have to invest keeping in mind the rising gold prices. As can be seen, gold ETFs do not make money in a year themselves.
since the Gold ETF tracks the price of gold. Hence, when gold prices fall, gold ETFs also get impacted. In the last few years, gold prices have come down.
In fact, gold prices haven’t moved as fast as they should have in line with global economic activity, so gold ETFs haven’t taken off all of a sudden.
Gold is a Safe Investment
When the economic growth around the world increases, which leads to a decrease in gold prices, such a pattern is going on.
Gold is considered a safe investment in which there may or may not be a possibility of profit, but there will be no loss.
However, for the last few years, after investing in gold, the returns have been negligible. As it escalates, there could be economic chaos or geopolitical tension around the world.
But after a phased process over the next few years, investing in gold will really prove to be profitable, and gold ETFs will be very profitable at that time.
It does not make sense to invest in gold ETFs at the present time. If you want to invest for the long term, then a gold ETF is fine; otherwise, you will not get any benefit.
What do you need?
- To trade in gold ETFs, you must first open a Demat account.
- If you already have a Demat account, then there is no need to open a new one.
- You can also buy gold ETFs from the same depository account from which the shares are bought.
- You need to open a trading account if you do not already have one.
- If you have ever opened a trading account, you can use it again.
- Just login to that account and place orders like shares and NSDs.
When you login, you will need to repeat the following process:
- Go to Buying and Selling
- Click on “Scrip Code.”
- For example, if you want to buy Axis Gold, just type
- Select Axis Gold from the drop-down list
- Click to confirm your order
- Repeat the same process if you want to sell gold ETFs
- The under-performing companies in gold ETFs over the past year are shown above
- This does not mean that they are not worth investing in
