Indians love gold, but jewellery is a terrible investment — making charges of 8–25% mean you start underwater. For investment, prefer Sovereign Gold Bonds (SGBs) or gold ETFs. Keep gold to 5–10% of your portfolio as a diversifier, not your main wealth engine.
SGB vs ETF vs jewellery
- SGB: government bonds linked to gold price, 2.5% annual interest, tax-free capital gains if held to maturity (8 years). Best long-term option when available.
- Gold ETF / gold funds: easy to buy like stocks/MFs, low spreads, taxable on sale.
- Jewellery: for wearing, not investing.
- Digital gold apps: convenient but check fees and custody — often worse than ETF/SGB.