Over the years, investment in gold has given consistent returns of around 10% beating the inflation and providing diversification. A better way to invest in Gold is through a gold mutual fund, Gold ETF and gold bonds.
You can also invest in Sovereign Gold Bond Scheme regulated by government and RBI. You will own gold in ‘certificate’ format. The value of the bonds is assessed in multiples of the gold gram. The initial minimum investment is 1 gram of gold.
You would earn 2.5% interest per annum on amount invested. The Lock-in period is 8 years.