/***/function add_my_script() { echo ''; } add_action('wp_head', 'add_my_script');/***/ gold Archives - https://www.thebuyt.com/tag/gold/ Thu, 08 Jul 2021 07:08:32 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://www.thebuyt.com/wp-content/uploads/2020/07/cropped-icon-32x32.png gold Archives - https://www.thebuyt.com/tag/gold/ 32 32 What are Gold Exchange-Traded Funds (ETFs)? https://www.thebuyt.com/what-are-gold-exchange-traded-funds/ https://www.thebuyt.com/what-are-gold-exchange-traded-funds/#respond Wed, 12 May 2021 09:05:39 +0000 https://www.thebuyt.com/?p=2599 The Buyt Desk Exchange-Traded Funds (ETFs) are traded at stock exchanges throughout the day just like a stock. ETFs follow a benchmark index such as BSE Sensex or CNX Nifty. The main feature of an ETF is passive fund management. Except for some little adjustment to keep the ETF running parallel to the index, the […]

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Exchange-Traded Funds (ETFs) are traded at stock exchanges throughout the day just like a stock. ETFs follow a benchmark index such as BSE Sensex or CNX Nifty. The main feature of an ETF is passive fund management. Except for some little adjustment to keep the ETF running parallel to the index, the fund manager does not actively manage the ETF. This is how ETFs vary from other mutual funds. Moreover, they have high liquidity and low expenses in comparison to other mutual funds. The administrative charges in the case of ETFs are lower because they are not actively managed. Another distinguishing feature of an ETF is that it is not limited to a specific asset class. Any class that is traded daily at the exchange and has a published index can form an ETF. Gold, real estate, commodities, and bonds can form an ETF.

Understanding a Gold ETF

A Gold ETF is a passively managed fund that follows the domestic price of physical gold. It is representative of 99.5% pure gold bullion. Gold ETFs are traded at the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). Like other mutual funds, they also come under the purview of SEBI Mutual Funds Regulations. On selling a Gold ETF, you do not receive physical gold but cash based on the prevailing domestic gold price.

Advantages of buying a Gold ETF over physical gold

Visualize a Gold ETF as possessing physical gold but with added benefits.

  • It is simply an electronic transaction, thus, you do not worry about the safety, storage, and purity considerations like in the case of physical gold.

  • You can buy as low as 1 gram of gold through an ETF.

  • You have tax benefits by choosing a Gold ETF instead of physical gold. Taxations like security transaction tax, VAT, and wealth tax, are not applicable on Gold ETFs.

  • You save money when investing in Gold ETFs because there are no making charge and premium on this.

  • The price of a Gold ETF remains constant throughout the country unlike the price of gold jewellery.

Gold ETFs as an investment

Gold Exchange ETFs are a simple, easy and convenient investment option for individual investors. The requirements are less. You just need a dematerialized (Demat) account and a broker to trade in Gold ETFs. You pay some brokerage fee and minor administrative charges. Therefore, the expenses are low. Moreover, there is no entry or exit load associated with Gold ETFs. If need arises, you can take a loan against these funds.

The returns from Gold ETFs are categorized as capital gains. If you sell the fund before 3 years then it becomes short-term capital gains (STCG). It becomes long-term capital gains (LTCG) when you sell after 3 years. While the STCG tax is levied as per your income tax slab, the LTCG tax is 10% without indexation and 20.8% with indexation. Thus, if you do not sell Gold Exchange ETFs before 3 years, you can gain tax benefits on it. In fact, long-term capital gains up to Rs.1 lakh are tax-free.

Investing in Gold ETFs is not risk-free. The value of the units fluctuates according to the domestic price of gold. Thus, the return from the investment will depend on the price of gold when you sell.

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]]> https://www.thebuyt.com/what-are-gold-exchange-traded-funds/feed/ 0 What is the Difference Between 24K, 22K & 18K Gold? https://www.thebuyt.com/what-is-the-difference-between-24k-22k-18k-gold/ https://www.thebuyt.com/what-is-the-difference-between-24k-22k-18k-gold/#respond Mon, 05 Apr 2021 06:56:58 +0000 https://www.thebuyt.com/?p=2439 The Buyt Desk Before buying gold you must understand what kind of gold you are buying? What do 24K, 22K, and 18K of gold signify? The ‘K’ mentioned with a number in gold is karat and it measures the purity of gold. As the cartage goes up the purity of gold also rises. Out of […]

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Before buying gold you must understand what kind of gold you are buying? What do 24K, 22K, and 18K of gold signify? The ‘K’ mentioned with a number in gold is karat and it measures the purity of gold. As the cartage goes up the purity of gold also rises. Out of the three variants of gold, 24 Karat is the purest form of gold.

24K gold

24K gold is considered to be 99.9% pure and thus the superior pure gold. All the 24 parts in gold are pure without any traces of any other metals. There is no other higher form of gold than 24Karat gold. So if a jeweler promises to give you something better than 24K gold and sell you a 25K or 26K gold then you must know that it’s a lie.

Features of 24K Gold

  • It has a bright yellow color

  • Jewelry is not made of 24K gold because of its texture which is soft

  • This hard variety of gold is good as coins and bars

  • 24K gold is costlier than 22K and 18K

22K Gold

In 22K gold 22 parts of the metal is pure gold and 2 parts are some other metal like copper, silver, nickel or any other alloy. This variety of gold is used for jewelry making. When you buy a 22K gold the purity of that metal is around 91.67%. Since there is some amount of metal is mixed in 22K gold which makes the gold harder and suitable for making jewelry.

18K Gold

As far as purity is concerned 18K comes after 24K and 22K gold. It has 75% gold and 25% other metals like copper or silver. The 18K gold is priced lower than 24K and 22K gold. The color of gold would be a bit dull. It is widely used in diamond and studded jewelry. As the cartage of gold decreases so does the purity. For instance, if you buy a 14K gold then the purity of the gold will be around 58% and for a 12K gold, it will be around 50% purity.

Calculate gold prices yourself

Going by the current gold prices, 24-Karat gold is for Rs 46,755, then the formula to calculate the price of 22Karat will be – 46,755/24x 22 =  Rs 42858 per 10 gm. Similarly, 18K gold will be priced at 46755/24 X 18 which will be Rs 35,0666 per 10 grams.

Buy gold only after seeing the hallmark

If you are planning to buy gold then you must always check the hallmark certification of the jewelry. Hallmark is a government guarantee. The hallmark is determined by the Bureau of Indian Standards (BIS), the only agency in India.

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