Physical Gold
Pros: Tangible ownership, cultural value, accepted as loan collateral.
Cons: Making charges (10–25% on jewellery), storage risk, GST of 3%, not easily divisible.
Digital Gold
Buy gold starting from ?1 via platforms like PhonePe, Google Pay, and Paytm. Stored in MMTC-PAMP vaults on your behalf.
Cons: No SEBI/RBI regulation, 3% GST on purchase.
Sovereign Gold Bonds (SGB) — Best Option
Issued by the Government of India (RBI), SGBs are the most attractive gold investment vehicle:
- 2.5% annual interest on the investment amount
- No capital gains tax if held till maturity (8 years)
- Backed by the Government of India — zero default risk
- No making charges or storage charges
Our Recommendation
For pure investment: Sovereign Gold Bonds first, then Gold ETFs. Physical gold is best kept minimal — only for jewellery with genuine cultural need.
