Planning to invest in Gold? Know your options, outlook and MCX strategy

It is never too late to invest in gold and if you have missed the opportunities of buying this yellow metal, here is your time now. Anuj Gupta, Deputy Vice President, Commodity and Currency Research at Angel Broking said that the investors can take advantage of the volatility around the precious metals - gold and silver. 

Gold and silver strategy

Gupta said that there will be price corrections and upward trends in gold and silver depending upon the developments around the coronavirus and other factors. The best strategy is to look for opportunities and buy on dips, he said. 

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Anuj Gupta’s intraday strategy on Gold, Silver futures 

Buy Gold at Rs 50,000; Stop Loss at Rs 49,700 and Target Price at Rs 50,500 

Buy Silver at Rs 67,000; Stop Loss at Rs 66,000 and Target Price at Rs 69,000 

How to do investments in gold  

Physical gold – Gupta said that physical gold can be purchased from a local jeweller. The spot price in Delhi today is around Rs 50,300. 

Gold ETF’s or Exchange Traded Funds – This is one of the popular options in developed countries and buyers are still to catch up in India. Gold ETF’s invest in physical gold and are traded in the same way as equities on stock exchanges. Investors need to have a Demat account to trade in it. 

Gold Accumulation Plans (GAP) - This is gradually gaining a lot of popularity. One can buy gold online via mobile wallets such as Paytm, Phonepe and under the Gold Rush plan of Stock Holding Corporation of India. These gold buying options are offered either in association with MMTC-PAMP or SafeGold or both. 

Sovereign Gold Bonds (SGB): These is one of the safest gold investment mechanism, where the Reserve Bank of India issues SGBs on behalf of the government. The RBI announces dates with respect to this. The next tranche will be open for subscription between 28 January and 1 December 2021. 

MCX Gold futures - This is another viable option for investors to invest in gold. It is safe, hassle free and gives an option to investors to start from small investments.