In place of buying physical gold, you could buy Gold ETFs, which offer more advantages than physical gold. They are easy to sell, they are held in electronic form and there's no question of theft. Also, there's no need to invest in a locker and it tracks gold prices...so returns are like gold. Here are 5 gold ETF's/Funds that you could consider.
SBI Gold ETF
SBI Gold ETF is one of the top gold ETFs in India with substantial assets under management. The fund tracks gold prices and has generated a negative return of approximately 1.0 per cent over the last one year. Excellent hedge against inflation and extremely liquid.
Motilal Oswal MOSt Shares Gold ETF
MOSt Gold Shares allows investors for the very first time to directly buy gold from an asset management company. An investor can buy Gold ETFs from the stock exchange and then redeem the same for physical gold bars as lows as 10 grammes. In short, exchange your ETFs for physical gold anytime.
IDBI Gold ETF
IDBI Gold Exchange Traded Fund is an open ended gold exchange traded scheme which tracks the price of gold in the domestic market. Each unit of IDBI Gold ETF is backed by 24 carat gold of 99.5% purity and will be held by a custodian.
Kotak Gold ETF
Kotak Gold ETF is an open-ended Exchange Traded Fund, which invests in physical gold and endeavors to track the domestic spot price of gold as closely as possible. Thus it provides an option to invest in gold without taking physical delivery of gold. Each unit of the KGETF is approximately equal to 1 gram of gold.
Axis Gold ETFs
Axis Gold ETFs will allow you gold purity of 99.5% at prevailing market prices without premium charges. An excellent hedge against inflation.