Gold Investment Calculator
Calculate gold investment returns
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About Gold Investment Calculator
Gold has been a traditional investment in India for wealth preservation and hedge against inflation. This calculator helps estimate returns from physical gold, digital gold, Gold ETFs, or Sovereign Gold Bonds based on expected price appreciation.
How to Invest in Gold?
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Physical Gold: Buy jewelry, coins, or bars (making charges + wastage applies)
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Digital Gold: Buy gold online, stored in vaults (min ₹1, can redeem anytime)
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Gold ETFs: Invest in gold through stock exchange like stocks
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Sovereign Gold Bonds (SGB): Govt bonds backed by gold (2.5% interest + price appreciation)
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Gold price appreciates based on demand, inflation, and global factors
Example:
₹1 lakh invested in gold at ₹60,000/10g = 16.67g. After 10 years at 8% appreciation, gold price = ₹1,29,500/10g. Your investment grows to ₹2.16 lakhs, returns = ₹1.16 lakhs!
Key Benefits
Inflation Hedge: Gold prices rise with inflation, protecting purchasing power
Portfolio Diversification: Low correlation with stocks, balances portfolio
Crisis Protection: Gold performs well during economic uncertainty
No Default Risk: Physical gold has intrinsic value, can't go to zero
Liquidity: Can sell gold anytime for cash
Cultural Value: Important for marriages and festivals in India
Frequently Asked Questions
Which is better - physical gold or digital gold?
Digital gold has no making charges, wastage, or storage worries. You can buy from ₹1 and sell anytime. Physical gold has sentimental/cultural value and you hold it. For investment purpose, digital gold or SGBs are better. For jewelry/gifting, buy physical gold.
What are Sovereign Gold Bonds?
SGBs are government bonds where principal is linked to gold price. You get 2.5% annual interest PLUS gold price appreciation. Lock-in 5 years (premature exit on stock exchange), maturity 8 years. No GST, no storage cost, and capital gains tax-free on maturity. Best gold investment option!
Is gold a good investment for long-term?
Gold has given ~8-10% annual returns historically in India. It's good for wealth preservation and portfolio diversification (allocate 5-10%). However, equity gives higher returns long-term. Use gold as stability anchor, not primary growth driver.
How is gold taxed in India?
Physical gold: LTCG 20% with indexation (>3 years holding). Digital gold/ETF: LTCG 12.5% (>1 year). SGB: Capital gains tax-free if held till maturity, 2.5% interest is taxable. GST 3% on physical gold purchase (not on digital/SGB).