Everybody has an interest in buying gold by saving money. People are always saving money and then buying gold. However, we are not always buying gold at the correct price, unfortunately. The reason is that while we save money, prepare, and go to the shop to buy gold, the gold price increases in the meantime. Even if we save money at the right time, we can't buy gold at the right price. If you have a good investment strategy, you can definitely invest in gold at the right price, grow it, and also achieve your target.
As a small investor or a middle/lower-middle-class investor,
100 grams may feel like a huge target. Let’s break it down. In this strategy,
we will save gold without physical purchase. There is no need to see the
physical gold until we reach 100 grams. Our plan is to buy 1 gram of gold per
month using Nippon India Gold BeES ETF. You can start investing in gold with a
small amount (Rs. 65 currently) through Gold BeES. When we are buying gold, we
often worry whether the current gold price is high or low. By buying 1 gram per
month, the price gets averaged out. You can save 12 grams in a year, but that
should not be your goal. In my opinion, you should aim to save 20 grams per
year. Now, you might wonder how to buy the remaining 8 grams. My best
suggestion is to add more Gold BeES ETF units to your demat account whenever
you feel that the gold price is low.
If you get into this habit, whenever the gold price drops,
you can buy gold. You can also set an alert on your mobile app to get a
notification if the gold price falls. This way, you can buy 20 grams per year,
and in 5 years, you’ll have easily accumulated 100 grams of gold.
Advantages of Nippon India Gold BeES ETF are,
- 1. No making charges or GST.
- 2. Guaranteed purity by the fund.
- 3. Buy in small amounts/ Flexibility in Investment Amount.
- 4. No Storage and Security Risks.
- 5. Liquidity.
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