{"id":23942,"date":"2022-07-13T11:10:29","date_gmt":"2022-07-13T05:40:29","guid":{"rendered":"http:\/\/www.greenworldinvestor.com\/?p=23942"},"modified":"2022-07-13T11:10:29","modified_gmt":"2022-07-13T05:40:29","slug":"all-that-glitters-in-not-gold-indian-gold-investment-in-2022","status":"publish","type":"post","link":"https:\/\/iiec-india.org\/greenworld\/2022\/07\/13\/all-that-glitters-in-not-gold-indian-gold-investment-in-2022\/","title":{"rendered":"All That Glitters is Not Gold \u2013 Indian Gold Investment in 2022"},"content":{"rendered":"

Gold Investment in India<\/h2>\n

Despite the increasing trade deficit, India continues to import huge quantities of gold because Indians have a preference for physical gold. Gold is regarded as safe haven globally and provides much-needed cushioning especially during times of market volatility and distressing financial conditions. The Indian government\u2019s Sovereign Gold Bond<\/em><\/strong> (introduced in 2015) and Gold ETFs<\/strong><\/em><\/a> are a good way to stay invested in gold without holding physical gold. Not only, does it assign units at the current rate of gold but also gives out a lofty interest (~2.50% per annum paid semi-annually). Also, the gains are tax-free if the bonds are held till maturity i.e., 8 years.<\/p>\n

\"Gold<\/a><\/p>\n

The price of the sovereign gold bond<\/em> is determined by the average closing price of gold (999 purity) over the last three business days and a discount of\u00a0Rs.50 per gram is also given if applying online. The minimum investment is 1 gram while the maximum limit is 4 kgs for an individual.\u00a0Indians prefer physical gold for its liquidity, however, these bonds come with a tenure of 8 years. But investors can exercise the exit option after the fifth year. However, bond units cannot be redeemed before the fifth year. But one can avoid additional charges like making charges and GST if buying the gold bonds\/ funds.<\/p>\n

Gold occupies an important place in everyone\u2019s investment portfolio as it provides insurance from erratic equity markets and rupee depreciation.\u00a0It acts more like a good asset diversifier<\/em> in one\u2019s portfolio. In the current scenario of rising interest rates and increasing trade deficit, the rupee continues to remain weak against the US dollar. India is already feeling the pressure of rising oil and steel prices and increasing imports is further increasing the trade deficit. With the pandemic situation and Russia\u2019s war over Ukraine, the prices of almost all commodities have risen enormously. And, gold is not an exception. The country continues to import huge quantities of gold as Indians have a preference for physical gold. To date, a huge percentage of the population shies away from buying e-gold i.e., in the form of bonds\/ ETFs. As a result, India\u2019s imports are rising faster than exports. This has widened the dollar shortage in the country, which is usually funded by inflows from stock market investments, foreign loans, etc. However, the FPIs have moved almost ~$40 billion out of India, in the past eight months. \u00a0Thus the \u2018balance of payment\u2019 (BOP) account now stands in negative.<\/p>\n","protected":false},"excerpt":{"rendered":"

Gold Investment in India Despite the increasing trade deficit, India continues to import huge quantities of gold because Indians have a preference for physical gold. Gold [\u2026]<\/span><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_eb_attr":"","content-type":"","footnotes":""},"categories":[88,30],"tags":[310,319,370,837,838,1459,2213,2216,4009,5211],"class_list":["post-23942","post","type-post","status-publish","format-standard","hentry","category-finance-indian-capital-markets","category-india-green-stocks-greeninvest","tag-advantages-of-gold-etf","tag-advantages-of-physical-gold","tag-all-that-glitters-in-not-gold-indian-gold-investment-in-2022","tag-buying-gold-bonds-india","tag-buying-gold-etfs-india","tag-disadvantages-and-drawbacks-of-gold-etf","tag-gold-etfs","tag-gold-investment-india","tag-physical-gold-investment-india","tag-sovereign-gold-bond"],"_links":{"self":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/23942","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/comments?post=23942"}],"version-history":[{"count":0,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/posts\/23942\/revisions"}],"wp:attachment":[{"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/media?parent=23942"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/categories?post=23942"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/iiec-india.org\/greenworld\/wp-json\/wp\/v2\/tags?post=23942"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}