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How To Buy Gold Using a Demat Account
12 Sep 2023

Depository (or Demat) accounts allow their account holders to invest and trade on the stock markets without actually needing to trade with the physically certified copies of their stock thereby allowing for ease and efficiency. The benefits of digital gold investments are vast and contribute to their increase in popularity as they allow for gold investments to be made without having to worry about storing or safeguarding said gold. Moreover, they accrue returns for their owners which adds to their appeal. Read on to understand how to buy gold in a Demat account.

Ways to Buy Gold Using a Demat Account –

Digital gold investments can be made in a number of ways, some of which have been mentioned below.

  • Gold Exchange-Traded Funds (or ETFs) – These investments allow for investors to not have to worry about storing the gold they invest in. With the aid of a Demat account, account holders can purchase units of gold to buy, hold and sell. Operating akin to mutual funds, gold ETFs provide their owners with a superior quality owing to the fact that they are based on literal gold. Investing in Gold ETFs is advantageous as not only do they accept modest investments but they provide owners of the same with tax benefits.


  • Electronic gold (or e-gold) – Investors are fond of investing in electronic gold owed in part to the ease with which they can be invested in. Serving as gold in a Demat form, this investment requires individuals to create a separate Demat account catered exclusively towards e-gold investments. This account allows for “Demat gold” to be traded with ease. Owners of e-gold are entitled to buy and sell their gold at any time that suits them best and in accordance with a price that matches what they desire.


  • Gold funds – Like gold ETFs, gold funds are also similar to mutual fund investments. These ho, ever, do not require a specialized Demat account catered exclusively towards their sale and purchase. That being said, they provide investors of the same with features akin to those alternate gold investment plans provide.

Investors and traders of the above are encouraged to study each of the available digital gold investments with a fine-tooth comb prior to investing their money in the same.

Related Articles: How to Open a Demat Account Without a Broker | Factors to Keep in Mind While Opening a Demat account | Factors to Consider When Opening a Demat Account 


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