Dhanteras 2025: 6 smart ways to invest in gold beyond jewellery and coins
Buying gold during Dhanteras is traditional, but you don’t always need to buy jewellery or coins. With gold prices reaching new highs, investors are now exploring safer and more flexible ways to invest in gold. Let’s look at 6 ways to invest in gold smartly this festive season.
Sovereign Gold Bonds (SGBs) - Backed by the Government
Sovereign Gold Bonds are issued by the Reserve Bank of India (RBI) on behalf of the central government. These bonds mirror the price of gold and are considered among the safest investment options. Investors earn a fixed annual interest rate of 2.5 per cent, paid twice a year. The most significant benefit is that there are no capital gains taxes if you hold them for the full eight-year tenure. Although new SGBs are currently paused, they can still be bought through the secondary market using a demat account on NSE or BSE.
Gold Exchange Traded Funds (ETFs) - Liquidity with Transparency
Gold ETFs are traded on stock exchanges, making them one of the most liquid and transparent ways to hold gold. Each ETF unit represents a specific amount of physical gold held by the fund. They eliminate worries about storage and making charges that accompany jewellery.
To buy, you only need a demat and trading account, allowing you to invest or exit at any time during trading hours.
Gold Mutual Funds - SIP Route Without a Demat Account
Gold mutual funds, often called “Gold Funds of Funds (FoFs)”, invest in gold ETFs. They allow small and systematic investments even without a demat account. You can start a Systematic Investment Plan (SIP) for as little as Rs 100. These funds are professionally managed, making them suitable for people who want easy exposure to gold’s price movements while maintaining investment discipline.
Digital Gold - Buy 24K Gold Anytime, Anywhere
Digital gold lets you buy and sell 24-carat gold online in small quantities. Platforms such as MMTC-PAMP, SafeGold, and Tanishq offer secure storage in insured vaults. This form of gold is backed 1:1 by actual physical gold.
You can later redeem it as coins, bars, or jewellery if you wish. It’s flexible, accessible, and convenient for those wanting to invest via mobile wallets or fintech apps.
Gold Mining Stocks - Higher Risk, Higher Reward
Investing in gold mining and refining companies’ shares is another way to benefit from gold’s price movements. When gold prices rise, the profitability of these companies often improves, driving their stock prices upward. However, these investments are riskier than SGBs or ETFs, as they depend on company earnings, global demand, and operational efficiency. This option suits investors comfortable with market risk.
Gold Futures - For Experienced Traders
For those familiar with markets, gold futures contracts allow investment in gold by predicting its future price on commodity exchanges. Traders can buy or sell these contracts for profit as the market fluctuates. While it offers potentially higher returns, gold futures are speculative and require market knowledge and risk awareness, making them ideal only for experienced investors.
Smarter Gold Buying This Dhanteras
With rising prices and broader investment choices, gold buyers can now diversify beyond jewellery and coins. Digital assets and gold-backed instruments offer flexibility, tax efficiency, and security. Whether you opt for SGBs, ETFs, or mutual funds, the key is to match your investment to your goals.
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