Tired of buying gold the same old way? Here’s what to do this Gudi Padwa

They say, “All that glitters is not gold.” While this may be true in most cases, when Indian festivals come around, you can be sure that the glittering yellow metal hanging off people’s necks and hands is indeed, gold. Most Indians consider it auspicious to buy gold during festive times and is said to bring wealth and good luck to individuals and families.

There’s another reason why festivals are the perfect time to buy gold – the market is usually teeming with variety and special offers. A popular festival during which people buy gold is Gudi Padwa, mainly because of the significance it holds for Indians.

The perfect time to buy gold

Gudi Padwa is a springtime festival that marks the end of the harvest season and the transportation of produce to the marketplace. This festival is mostly celebrated in the states of Maharashtra, Andhra Pradesh, and Karnataka, and marks the beginning of the New Year for communities living in these areas. In the week leading up to Gudi Padwa, the market sees high demand for gold as  (not necessary) result in increased sales. This makes it an ideal time to invest in gold.

Up the ante and buy Gold ETFs

With the advent of technology and the country going digital, many people are slowly moving towards investments in Gold ETFs (Exchange Traded Funds) rather than buying physical gold. This is because digital gold is not only convenient and easy to purchase but offers several other benefits over physical gold.

What are Gold ETFs?

Gold ETFs are technically units that represent physical gold, and these units are traded like stocks of a company on the exchange. Gold ETFs are bought in only dematerialised and gold fund can either be bought in dematerialised or in paper form. These Gold ETF / gold funds are an excellent way to add gold to your investment portfolio without actually buying physical gold.

Know more about the factors to consider before making an investment.

Benefits of buying Gold ETFs:

  • Buying Gold ETFs is more cost-effective as there is no management fee involved in the transaction as compared to physical gold
  • ETFs are traded directly on the stock exchanges, and they can be bought or sold at any given point of time.
  • Gold ETF value close represent the cost of physical gold.
  • You can buy digital gold in fractions and accumulate it for the future without having to worry about damage or weightage loss during selling
  • No worry about storage, loss or theft

In addition to this, Gold ETFs can also be used as collateral for loans, making ETFs even more beneficial.

So, this Gudi Padwa, instead of buying gold the same old traditional way, consider buying it the new-age way. Go digital and claim the benefits of digital gold.

Click here to start your Gold ETF purchase.

*Gold Efts are distributed by HDFC Securities. Investment in securities market are subject to market risks, read all the related documents carefully before investing. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.