[DiMaGo]

Hi Everyone - I needed some suggestion on Gold ETFs.
Off late I have been thinking hard to invest in Gold ETFs. This urge is NOT due to the recent surge in Gold Price but, an urge for a long-term reliable, safe and relatively risk-free [compared to Stock market volatality] investment.

From the internet, I have understood that LIC Gold ETF, Invesco Gold ETFs and IDBI Gold ETFs have all performed good over some duration of time.

Can the experts here please shed some light on below points:
a. Are Gold ETF investments advisable now [with gold prices at all time high]?

b. Should we hold off with Gold ETFs until the gold prices stabilise?

c. Would my investment in these Gold ETFs be comparatively risk free?

d. Is Gold ETF a suitable investment option for long-term [about 15 years]?

e. Would buying physical gold [gold bars/biscuits] from any of the Gold retailers [like Bhimas, Tanishq, etc.] more suitable compared to Gold ETFs?

f. Instead of Gold ETFs, should I invest in Gold Locker facility in apps like GPay, etc. since with such modes, the added burden of 'storing' gold is not there.

Requesting answers so that I can take my decision early. Kindly note my other modes of investment are covered under the new Tax regime with a running Home loan too!

[DigitalOne]

Originally Posted by DiMaGo

a. Are Gold ETF investments advisable now [with gold prices at all time high]?

b. Should we hold off with Gold ETFs until the gold prices stabilise?

c. Would my investment in these Gold ETFs be comparatively risk free?

d. Is Gold ETF a suitable investment option for long-term [about 15 years]?

e. Would buying physical gold [gold bars/biscuits] from any of the Gold retailers [like Bhimas, Tanishq, etc.] more suitable compared to Gold ETFs?

f. Instead of Gold ETFs, should I invest in Gold Locker facility in apps like GPay, etc. since with such modes, the added burden of 'storing' gold is not there.

I would suggest Gold fund/FoF instead of ETFs because you can do an SIP in a Gold fund or FoF. This will be slightly more expensive than an ETF but the advantages outweigh the higher expense.

For questions b,c,d nobody can reasonably predict. A 5-10% allocation to gold is always good. My personal mode of investing in Gold is via multi-asset allocation funds. But this will complicate your asset-allocation calculations and will not ensure a 5-10% allocation.

I wouldn't recommend physical gold at all. This is not very liquid. Most likely, one retailer either will not buy or buy at a discount gold bar of another jeweller. You might get locked-in.

I don't know about "f" but will not touch any apps-based gold investment with a barge poll.