00:00 What would you suggest to the common man, in which forms, what options do they have to
00:09 invest in gold?
00:10 Yes, so if I talk about a common man in India, then it is obvious that there are many options.
00:20 One is the option of physical gold.
00:23 But as far as investment is concerned, we do not prefer to buy physical gold.
00:31 Because if you are investing in it at a large level, then there are some risks in physical
00:40 gold, your storage, insurance cost, some security risks.
00:46 So as far as jewelry is concerned, then obviously you will have to buy physical gold.
00:51 Or if you want to buy gold for auspicious occasions like Akshay Tritiya, Dhanteras,
00:56 Diwali, then people often buy physical gold.
00:59 You can get some grams of coins, or you can buy jewelry.
01:05 For investment, we recommend, the best option to invest in gold is in a sovereign gold bond,
01:17 where not only is your holding cost zero, but you also get an interest of 2.5% per year.
01:27 And apart from that, there is a tax exemption on it.
01:29 If you take it in the primary issue and you finally sell it to the government after 8
01:39 years, then you have a tax exemption on it.
01:43 You have zero capital gains tax.
01:45 So there are a lot of benefits that you get in a sovereign gold bond.
01:49 So a sovereign gold bond is a very attractive investment tool.
01:58 After that, there are gold ETFs.
02:00 But in gold ETFs, the tax regime that has changed since April 1, if you buy a gold ETF
02:11 and hold it for 5 or 10 years, even then when you sell it, it will be taxed as short-term
02:19 capital gains.
02:20 Because the government has removed the provision on gold ETFs or gold mutual funds that after
02:30 3 years you would get a 20% tax with indexation benefit.
02:35 So now buying it as a gold ETF is not very attractive from a tax point of view.
02:45 The third investment tool is that you take its delivery in MCX, which is paper gold.
02:55 But it is a good opportunity for the same investor who is investing a little big.
03:03 So if you want to buy 5-10 grams, it won't be very attractive for you.
03:09 But if you want to buy in large quantities, you can take the delivery of gold in MCX.
03:15 The benefit of that is that if you hold it for 3 years, you will get a 20% tax with indexation
03:23 benefit.
03:24 So now buying gold in MCX is a very good and attractive opportunity from a tax point of
03:33 view instead of buying a gold ETF.
03:36 So I think there are many ways.
03:39 Sovereign Gold Bond is very attractive where you can buy 4 kg per individual for a maximum
03:45 of 1 year.
03:46 So for most people that is a big amount.
03:50 So you don't have to go beyond that.
03:54 But if you are a very big investor and you want to invest hundreds of crores or thousands
04:01 of crores, then obviously you can buy Sovereign Gold Bond up to a limit.
04:06 So even after that if you want to invest more money, then I think taking delivery from MCX
04:14 is probably a very attractive and tax conducive medium to buy gold.
