MCX Operator Group is now in 10 Countries INDIA ,USA, DUBAI , Singapore, Malaysia, Thailand, Netherlands, Belgium, Philippines and United Kingdom. Declared as INDIA'S Largest Operator Group.-- India +91 8860003368 (WhatsApp) / +91 8076054100, Singapore +65 81498274 WhatsApp / +65 81497290 , USA +1 7147147250 / +1 3237947485 (WhatsApp) , Philippines (M) +63 9380486368 (WhatsApp) | +63 9380488069, Thailand +66 641764754 (WhatsApp) | +66 6417 64845 , Malaysia +60 10 854 3837 (WhatsApp) | +60 10 854 3535


MCX Operator Group

INDIA +91 8860003368 / Singapore +65 81498274 / USA +1 3237947485

When most people think "Warren Buffett," they think of money. Though Buffett's father was a congressman and a stock broker, young Warren became a b...

Akshay Tritiya

April 25, 2012

Paper gold offers several advantages over the physical metal.

Here is what makes it a better investment option. 

Liquidity: You can buy and sell paper gold very fast. All it takes is the click of a mouse or a phone call to the broker. Gold ETF units are freely traded on stock exchanges and you can execute the transaction any time during market hours. 

Transparency in pricing: The price of paper gold is completely transparent. The price of an ETF unit is linked to the price of 1 gram of gold. There are no making charges or premiums involved. You only pay a small brokerage of 0.5%. 

Tax efficiency: Profits from gold ETFs and gold funds are treated as long-term capital gains and taxed at a lower rate (flat 10% or 20% with indexation) if the holding period exceeds one year. In case of physical gold, the holding period has to be three years before the profits are treated as long-term gains. Paper gold also does not attract wealth tax (except e-gold). 

Affordability: Paper gold is suitable for investment purposes because it can be bought in small denominations of 1 gram. Some companies even offer 500 mg units. It is not possible to buy gold jewellery in very small denominations. The smallest ornament would weigh about 4-5 grams. 

Assurance of purity: There's no need to worry about the purity of gold while buying ETFs. Gold ETFs are required to hold equivalent quantity of gold bullion of 99.5% purity. In physical gold, the buyer has to ensure that he gets the purity he has paid for. 

Convenience and safety: Physical gold can be stolen and, therefore, needs to be stored in a locker. Gold ETF and e-gold units are held electronically in the demat form. The gold fund of funds can be either in the demat form or held with the custodian. 

Conversion possible: Paper gold can be converted into physical gold by rematerialisation. Till now, e-gold was the only form of paper gold that allowed conversion to physical gold. Now, gold ETF units can also be exchanged for bullion.


Go Back


credit and debit card payment

Operator Calls in Nifty



Flag Counter
SITEMAP Registered & Protected