Is it possible to invest in gold using your demat account | Motilal Oswal

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Investments you make in the very precious gold metal that is prized all over the world can only reap benefits for you. The great presence that this metal has had over the years, especially for Indian investors, is more than wellknown. While some investors in India would prefer to flaunt any precious metal in the form of ornaments worn, some investors opt to accumulate the asset that is gold in a more discreet manner. India has a unique interest in gold for its value that is related to religion and culture. In case you are thinking of investment per se, you may already hold stocks in a Demat account, but wish to know if you can hold gold in some sort of electronic format too. This is worth exploring as gold held this way has many advantages. 

Gold and Its Investment 

Gold is always making some sort of headline or other around the globe. In India, it's now considered not just an asset for its beautiful ornamentation, but for its value as an asset that is easily made liquid. Besides this, more importantly, gold investment is viewed as a hedge against inflation, and of great use in any emergency. Whether you are a modest or extravagant investor, it is worth investing a part of your wealth in gold. You may have had to open a Demat account online to invest and hold your securities like stocks, but you do not necessarily require one to hold gold investment, such as digital gold. 

Digital Gold Investment

If you wish to allocate a portion of your wealth to what is known as digital gold, you can do so online. There are no brokerage fees to do this, and you can manage this kind of electronic gold investment by yourself, without the need for a Demat account. When you make a purchase of gold in digital form, you buy 24 carat gold units, but do not take any physical custody of it. Instead, it is held securely in a vault until you redeem it for selling purposes. This is a safe way to invest in gold, as your gold is safe from theft, and is also housed with insurance attached. The best part of this kind of investment in the metal is that you can buy very small units of it and grow it gradually. The smallest unit you may buy of digital gold is worth Rs. 100. 

Paper Gold

If you wish to trade in gold exchange traded funds or ETFs, you will require the services of a Demat account. This is one form of ‘paper gold’ that you can invest in. Every unit of a gold ETF is typically worth a gram of gold, and the value depends on the price of gold that exists in the market at any given time. The advantage of this is that you invest in gold without having the physical risks of owning it. Similarly, you may want to invest in Sovereign Gold Bonds, and you need a Demat account to invest in these too. These are government bonds, issued by the Reserve Bank of India, and they guarantee you a fixed rate of interest at 2.5% no matter whether there are price fluctuations in gold prices or not. 

Gold Investment Awaits You

It is a good investment decision to invest in gold, in forms other than the physical form of the metal. With digital or paper gold, you run less of a risk of theft and loss, and you still have a great opportunity to grow your wealth. You can open a Demat account today and explore a gold investment option with Motilal Oswal. 

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