As the festive season of Dhanteras and Diwali begins, the enthusiasm for purchasing gold is at its peak. Traditionally considered an auspicious investment during this time, gold stands as the most sought-after asset. Given the past fluctuations in gold prices, individuals considering purchasing gold might explore various investment avenues with differing tax implications. Understanding these rules is crucial before making a decision. What are the best ways to buy gold on this Diwali, let's understand in this video.
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#gold #diwali2023 #goldprediction #goldpricepredictions #goldanalysis #goldprice2023 #goldnews #22caratgoldrate #diwali2023 #diwaligoldprediction #dhantaresgold
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NewsTranscript
00:00 What would you suggest to the common man, in which forms, what options do they have to
00:09 invest in gold?
00:10 Yes, so if I talk about a common man in India, then it is obvious that there are many options.
00:20 One is the option of physical gold.
00:23 But as far as investment is concerned, we do not prefer to buy physical gold.
00:31 Because if you are investing in it at a large level, then there are some risks in physical
00:40 gold, your storage, insurance cost, some security risks.
00:46 So as far as jewelry is concerned, then obviously you will have to buy physical gold.
00:51 Or if you want to buy gold for auspicious occasions like Akshay Tritiya, Dhanteras,
00:56 Diwali, then people often buy physical gold.
00:59 You can get some grams of coins, or you can buy jewelry.
01:05 For investment, we recommend, the best option to invest in gold is in a sovereign gold bond,
01:17 where not only is your holding cost zero, but you also get an interest of 2.5% per year.
01:27 And apart from that, there is a tax exemption on it.
01:29 If you take it in the primary issue and you finally sell it to the government after 8
01:39 years, then you have a tax exemption on it.
01:43 You have zero capital gains tax.
01:45 So there are a lot of benefits that you get in a sovereign gold bond.
01:49 So a sovereign gold bond is a very attractive investment tool.
01:58 After that, there are gold ETFs.
02:00 But in gold ETFs, the tax regime that has changed since April 1, if you buy a gold ETF
02:11 and hold it for 5 or 10 years, even then when you sell it, it will be taxed as short-term
02:19 capital gains.
02:20 Because the government has removed the provision on gold ETFs or gold mutual funds that after
02:30 3 years you would get a 20% tax with indexation benefit.
02:35 So now buying it as a gold ETF is not very attractive from a tax point of view.
02:45 The third investment tool is that you take its delivery in MCX, which is paper gold.
02:55 But it is a good opportunity for the same investor who is investing a little big.
03:03 So if you want to buy 5-10 grams, it won't be very attractive for you.
03:09 But if you want to buy in large quantities, you can take the delivery of gold in MCX.
03:15 The benefit of that is that if you hold it for 3 years, you will get a 20% tax with indexation
03:23 benefit.
03:24 So now buying gold in MCX is a very good and attractive opportunity from a tax point of
03:33 view instead of buying a gold ETF.
03:36 So I think there are many ways.
03:39 Sovereign Gold Bond is very attractive where you can buy 4 kg per individual for a maximum
03:45 of 1 year.
03:46 So for most people that is a big amount.
03:50 So you don't have to go beyond that.
03:54 But if you are a very big investor and you want to invest hundreds of crores or thousands
04:01 of crores, then obviously you can buy Sovereign Gold Bond up to a limit.
04:06 So even after that if you want to invest more money, then I think taking delivery from MCX
04:14 is probably a very attractive and tax conducive medium to buy gold.