Gold ETF Vs Physical Gold: Gold has become a favorite investment destination at the moment due to the global uncertainty caused by the Middle East crisis, Donald Trump's tariff threats and the slowdown in the global economy. Gold prices have risen sharply in the last few weeks. Investment in gold is considered safe during market volatility. Apart from this, from an investment perspective, gold ETFs are considered better than physical gold.

Gold ETFs are becoming a popular investment option in India. According to data from the Association of Mutual Funds in India (AMFI), the net inflow of gold ETFs in 2024 was Rs 9,225 crore with a jump of 216 per cent. In the previous year i.e. 2023, this figure was much lower at Rs 2,919 crore.

Gold ETFs monitor the prices of physical gold. It can be bought or sold through the stock exchange like shares. Also, investors do not have to pay any making charge on it.

5 important benefits of gold ETFs

1. Easily tradable: Since these are exchange-traded funds (ETFs), they can be easily bought and sold. You can easily buy or sell them in the stock market, allowing you to sell them in the open market whenever you want and make maximum profits.

2. No storage cost: Unlike physical gold, exchange-traded units have no storage cost. Since ETFs are linked to your demat account, you can keep your profits in the bank.

3. No making cost: When you buy digital gold in the form of ETFs, you do not have to worry about the making cost of gold jewellery. Usually the making cost of gold jewellery can be up to 15-20 per cent.

4. Smaller units: You can invest in gold ETFs in smaller denominations. When the price of 1 gram of physical gold is around Rs 8,600, ETFs allow investors to buy digital gold in very small denominations like Rs 500-1,000.

5. Transparency: Monitoring the price of gold is very easy, so you can check the performance of your investment in ETF.