Akshaya Tritiya has become synonymous with gold buying. You can use the occasion to add gold to your portfolio. According to investment advisors, investors should have a 5-15% allocation to gold, depending on their preference for the yellow metal.
According to analysts,gold prices could rise going forward. , Investment demand for the yellow metal will likely increase in the coming months,"
Amid the lockdown in several states have imposed lockdown. If you are planning to buy gold digitally, here are some options you can explore.
SOVEREIGN GOLD BONDS
A direct substitute to holding the yellow metal in physical form, the Reserve Bank of India (RBI) issues Sovereign Gold Bonds (SGBs) in denominations of one gramme of gold and in multiples thereof.
SGBs bought in the primary market are exempt from the capital gains tax if held till maturity. In the case of premature withdrawal after the fifth year, the gains are taxed at 20% with indexation benefit.
If you sell them on stock exchanges within one year of purchase, the gains are added to the income. After one year, the gains are considered as long-term capital gains and taxed at 10%.
POSOTIVE : An investor earns 2.5% interest every year. Investors get the prevailing gold prices at the time of redemption. There is no storage cost.
NEGATIVE: Investors may need to sell SGBs at a discount on stock exchanges if they want to exit within five years of purchase and may not get the right price.
DIGITAL GOLD
An individual can purchase gold for as low as one rupee at any time of the day. However, the buyer will need to pay the Goods and Services Tax of 3%.
Buyers can ask for delivery of physical gold once they have accumulated at least one gram of the precious metal.
Digital gold investment is treated similar to physical gold ownership for taxation. If you sell within three years of purchase, the gains are added to the income and taxed as per the slab.
POSITIVE: There are no storage charges. The option works for those seeking to buy physical gold at a later date.
NEGATIVE: They are not meant for investors as the selling price is lower than buying price. If you take physical delivery of gold, there will be making charges.
EXCHANGE TRADED FUNDS
Gold Exchange Traded Funds (ETFs) are primarily paper gold. The money you invest will be pegged to 24-carat gold. The underlying asset is gold and some cash. To invest in these ETFs, you need to open a demat account.
When you redeem, you don't get physical gold. You will get the monetary equivalent of the price of gold on the day of redemption. ETFs have two costs -- expense ratio and the cost of opening a demat account.
POSITIVE: There's no storage cost and score over others when it comes to liquidity.
NEGATIVE: Expense ratio and demat account maintenance charges.
When buying gold on this Akshaya Tritiya, choose the instrument based on whether you want to invest or accumulate gold for a future event like marriage.
The SGBs are issued by Reserve Bank of India (RBI) on behalf of the government. They will be denominated in multiples of 1 gram(s) of gold and will be sold to resident individuals, HUFs, Trusts, Universities and Charitable Institutions.
| Tranche | Date of Subscription | Date of Issuance |
| 2021-22- Series I | May 17-21, 2021 | May 25, 2021 |
| 2021-22 Series II | May 24 – 28, 2021 | June 01, 2021 |
| 2021-22 Series III | May 31 – June 04, 2021 | June 08, 2021 |
| 2021-22 Series IV | July 12-16, 2021 | July 20, 2021 |
| 2021-22 Series V | August 09-13, 2021 | August 17, 2021 |
| 2021-22 Series VI | August 30- September 03, 2021 | August 30- September 03, 2021 |
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