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Bullion & Commodities

Gold, silver and commodities — the inflation hedge Indians have trusted for centuries.

Gold has been India's go-to store of value forever. The modern question isn't whether to own gold — it's which form. Physical, digital, ETF or Sovereign Gold Bond each have a different cost, tax and convenience profile.

🥇Four ways to own gold

Compare on cost, purity, storage and tax before buying.

  • Physical (jewellery/coins) — Emotional value, but 10–25% making charges and storage risk.
  • Digital gold — Buy from ₹10 via apps. Convenient, but unregulated by SEBI.
  • Gold ETFs / Funds — Tracks gold price, held in demat. 0.5–1% expense ratio.
  • SGB — RBI bond linked to gold price + 2.5% extra interest. Tax-free if held 8 years.

🥈Silver and other commodities

Silver is more volatile than gold but has industrial demand (EVs, solar). Other commodities (crude, copper, agri) are traded via MCX — high risk, leverage-heavy. Not for beginners.

  • Silver ETFs — SEBI-allowed since 2021. Easiest way to add silver.

📊How much to hold

Gold has zero earnings — it just stores value. Most planners recommend 5–15% of portfolio in gold for diversification and inflation hedge.

Micro Pro Tips

  • 🏆
    SGB beats jewellery for investment — Zero making charges, 2.5% extra interest, tax-free at maturity. Buy gold jewellery only to wear.
  • ⚠️
    Avoid commodity F&O — Leverage of 10–20× wipes out beginner accounts within weeks.
🌟 Gold is insurance, not income. Hold a small allocation in efficient forms — SGB or ETF — and let it quietly do its job.