What is a Gold ETF, and how do you invest in it?

Gold ETF Vs Physical Gold zoom-icon

A gold ETF is an exchange-traded fund with the objective of tracking the domestic physical gold price. It is a passive investment instrument that invests in gold bullion according to current gold prices. Therefore, in simple terms, Gold ETFs represent physical gold (in paper or dematerialized form). 

1 Unit of Gold ETF = 1 Gram of Gold.

Gold ETFs are traded on the Indian stock exchanges - like any other stock of a company. Just like how an investor would trade stocks, you can also trade Gold ETFs.

Gold ETFs are primarily listed and traded on the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). They are traded in the cash segment and could possibly be bought and sold continuously at market prices. 

The direct route to buy gold ETFs will require

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