AKSHAYA TRITIYA 2023 : IS Gold ETF Better Option Than Physical Gold ?

Akshaya Tritiya 2023 is coming on 22^nd April 2023. Buying Gold is considered very auspicious on Akshaya Tritiya. However, apart from the physical Gold, there are several other options available to the people, which are more convenient and easy to invest in Gold. In this article, we will discuss about the various investment options available to people on Akshaya Tritiya.

Both gold ETFs and physical gold investments have their own advantages and disadvantages, and which one is better for you depends on your investment objectives and preferences. Here are some of the key differences between the two:

1. Liquidity: Gold ETFs are highly liquid and can be traded on stock exchanges just like shares, which means you can easily buy and sell them as per your requirement. In contrast, physical gold requires more effort and time to liquidate, especially if you have large quantities.
2. Storage and safety: Physical gold requires safe storage, which can be expensive and challenging. On the other hand, gold ETFs are stored in electronic form, so there is no need for physical storage or safety measures.
3. Expense ratio: Gold ETFs have an expense ratio, which is the annual fee charged by the fund house for managing the ETF. This fee is typically lower than the storage and insurance costs associated with physical gold investments.
4. Price transparency: Gold ETFs are traded on stock exchanges, and their prices are easily accessible, and the market price of gold is reflected in their price. In contrast, physical gold prices are not always transparent, and you may have to rely on a dealer to determine the value of your investment.

Overall, gold ETFs offer more convenience and lower costs than physical gold investments. However, if you prefer to hold physical gold, it can provide a sense of security and diversification to your portfolio.

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Is digital gold better than physical gold ? (indiatimes.com)